Minutes from the Federal Reserve’s July meeting indicate that the central bank remains open to further interest rate cuts. While no decision was made, participants generally agreed that the economy was slowing and that uncertainties surrounding trade and geopolitical tensions could warrant accommodative action. The minutes also noted that weak inflation remained a concern. The Fed has already cut rates twice this year, in July and September, and markets now widely expect another cut at the next meeting in October. However, the minutes suggest that the Fed may be willing to pause after that if the economy improves as expected.
Tag: financial markets
Another Jolt of Uncertainty for a Global Economy Mired in It
With the ink barely dry on the winter´s misery of Ukraine, a new storm is brewing. Inflation is gripping the globe, economies are teetering on recession, and central banks appear helpless, stuck between a rock and a hard place. As governments and policymakers struggle to find a path through the storm, there´s a growing sense of unease. It´s as if the world is caught in a recurring nightmare, with each jolt of uncertainty pushing us further into the darkness.
The Other Trump Trade That Worries Markets
In the midst of the US-China trade standoff, another looming threat worries investors: the little-discussed US-South Korea trade imbalance. The asymmetry has grown significantly since the early 2000s and continues to widen, despite the Trump administration’s efforts to address it. Unless resolved, this trade spat could lead to protectionist measures, tariff increases, and further market volatility. As the geopolitical landscape remains fraught with uncertainty, investors should keep a watchful eye on this underreported trade dynamic.