Despite high inflation, strong economic growth, and a robust labor market, the Federal Reserve is expected to lower its benchmark interest rate by 25 basis points to a range of 4.25% to 4.5%. While market traders anticipate the rate cut, there is some skepticism among experts, with former Kansas City Fed President Esther George cautioning against it due to the need to monitor inflation closely and signal stability to the public and markets.
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Blow For Rachel Reeves And Keir Starmer As Inflation Reaches Eight-Month High
In November, inflation in the UK rose to an eight-month high of 2.6%, exceeding the Bank of England's 2% target, impacting Chancellor Rachel Reeves and PM Keir Starmer. The increase was driven by higher fuel and clothing prices, with housing and household services also seeing a 3.5% rise. Reeves emphasized efforts to improve the economy for working people, while Shadow Chancellor Mel Stride criticized the government's decisions as inflationary and damaging to consumers. Full Article
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