Washington, D.C., February 24, 2025 – Research released by the San Francisco Fed on Monday reveals that investors and economists expect the U.S. central bank to respond “strongly and systematically” to shifts in inflation and labor market conditions.
The analysis, which examined professional forecasts and bond market movements, indicates that market participants have grown increasingly sensitive to U.S. economic data - especially since 2022.
The study notes that although inflation began rising in 2021, the Fed did not initiate interest rate hikes until 2022. Similarly, deteriorating labor market data in mid-2022 spurred the Fed to reduce the policy rate by a full percentage point starting last September. Currently, the Fed’s target rate stands between 4.25% and 4.50%.
Recent economic indicators, including a survey showing business activity falling to a 17-month low, have bolstered market expectations of two quarter-percentage-point rate cuts later this year. Interest rate futures suggest that the first rate cut could come as early as June, with a second possible as early as October.
Analysts point out that concerns over slowing economic growth are now overshadowing fears of a resurgence in inflation, influencing the anticipated Fed policy moves. The findings underscore the central bank’s readiness to adjust monetary policy in response to evolving economic conditions, as financial markets continue to closely monitor U.S. economic data.
Inditex, parent company of Zara, reported a 4% sales growth in Q1 2025, down from 11% last year, amid concerns about weakening consumer demand. Despite this, the company plans a 9% dividend increase and €1.8 billion investment in growth, with expansion into new markets.
Malaysia’s palm oil stocks fell to 1.51 million tons in February, the lowest in nearly two years, due to lower production and exports. Crude palm oil output dropped 4.16%, while exports fell 16.27%. The decline may impact global prices, with supply and demand shaping future trends.
Walgreens Boots Alliance is going private after Sycamore Partners sealed a $10 billion deal, ending nearly a century on public markets. Struggling with competition and changing consumer habits, Walgreens aims to reinvent itself away from the pressures of being publicly traded.
The U.S. dollar has dropped to a three-month low amid growing concerns over slowing economic growth and the impact of new tariffs.
Markets tumbled Monday, with losses accelerating in the afternoon after President Donald Trump confirmed that 25% tariffs on imports from Canada and Mexico will take effect. Earlier in the session, stocks were already under pressure following a weaker-than-expected February report on a key manufact
Germany's election-winning conservative CDU/CSU bloc, led by Friedrich Merz, and the Social Democrats (SPD) have reached an agreement in principle with the Greens on a significant increase in state borrowing ahead of next week’s parliamentary vote.
Frederic Arnault, one of the five children of LVMH, opens new tab chairman and CEO Bernard Arnault, will become chief executive of the group's high-end Italian cashmere label Loro Piana in June, the world's biggest luxury group said in a statement.
The United States of America on Friday gave marching orders to the South African Ambassador Ebrahim Rasool declaring him ‘persona non grata’ - the latin phrase for “unwelcome person”.
XPeng Motors plans to mass-produce flying cars by 2026, becoming the first company globally to do so. CEO He Xiaopeng also highlighted advancements in autonomous driving and humanoid robotics as part of the company’s future tech initiatives.
World leaders welcomed the 30-day ceasefire proposal that Ukraine has agreed to, calling it a step toward ending the conflict with Russia.
Regarding the Armenia-Azerbaijan process, we cannot forget the years of occupation, and we will not forget them, President Ilham Aliyev said in his speech at the opening ceremony of the 12th Global Baku Forum.
In Tuesday’s closely watched parliamentary election, Greenland’s pro-business opposition Demokraatit party took a commanding lead after over 90% of the ballots were counted.
BioNTech forecasts a revenue decline for 2025, expecting between 1.7 billion and 2.2 billion euros, down from 2.75 billion euros last year. This drop is due to Pfizer write-downs and stable vaccination rates. BioNTech also plans significant job cuts and new hires.
Germany's election-winning conservative CDU/CSU bloc, led by Friedrich Merz, and the Social Democrats (SPD) have reached an agreement in principle with the Greens on a significant increase in state borrowing ahead of next week’s parliamentary vote.
BMW expects a €1 billion loss for 2025 due to the US-EU tariff dispute, including a 25% duty on certain vehicles and tariffs on its China-made electric cars. The company hopes not all tariffs will remain for the full year.
Uzbekistan has signed an agreement with French and Japanese companies to initiate uranium production in the Navoi region by the end of 2025.
The United States imposed sanctions on Thursday on Iran's Oil Minister Mohsen Paknejad and some Hong Kong-flagged vessels that are part of a shadow fleet that helps disguise Iranian oil shipments, the Treasury Department said.
Türkiye’s state-owned Turkish Petroleum Corporation signed a joint venture agreement with U.S. oil giants Continental Resources and TransAtlantic Petroleum, Turkish Energy Minister Alparslan Bayraktar announced.
Germany's election-winning conservative CDU/CSU bloc, led by Friedrich Merz, and the Social Democrats (SPD) have reached an agreement in principle with the Greens on a significant increase in state borrowing ahead of next week’s parliamentary vote.
Frederic Arnault, one of the five children of LVMH, opens new tab chairman and CEO Bernard Arnault, will become chief executive of the group's high-end Italian cashmere label Loro Piana in June, the world's biggest luxury group said in a statement.
The United States of America on Friday gave marching orders to the South African Ambassador Ebrahim Rasool declaring him ‘persona non grata’ - the latin phrase for “unwelcome person”.
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