Mitsubishi UFJ: Fed's Policy in the Second Half of Next Year to Complicate Due to Leadership Changes
BlockBeats News, December 11th: Mitsubishi UFJ Financial Group stated that the Federal Reserve voted 9 to 3 to cut the interest rate by 25 basis points and acknowledged that the labor market is gradually cooling down. Powell also emphasized the significant downside risks facing the labor market.
On the inflation front, the Federal Reserve pointed out that if no new tariffs are imposed, goods inflation may peak in the first quarter of 2026, but the persistence risk of inflation still exists. Powell signaled that a rate hike is not the baseline expectation, and there are divergences among FOMC members between maintaining the interest rate and cutting it.
The latest released dot plot shows that the median expectation of the Federal Reserve is to cut the interest rate only once in 2026, a hawkish stance that is significantly more hawkish than the market's expectation of approximately 55 basis points (or slightly more than two rate cuts). Powell also emphasized that the Federal Reserve is currently in a "favorable position" to patiently observe the development of the U.S. economy.
Looking ahead, the policy outlook for the second half of next year may be complicated by changes in the Federal Reserve leadership, adding uncertainty to the market. (FXStreet)
You may also like
Do you want to buy CRCL?
Wosh: Inflation has cooled in recent weeks, AI is reshaping the economy, and forward guidance has lost its necessity
The most secretive AI winner
Looking at Stripe's ambitions and the future of stablecoins from OUSD
From Pump.fun to Collector Crypt: Has Solana's income throne changed hands?
Dan Bin's latest speech: Don't miss out on a great era
Robinhood launches its own blockchain, no longer wanting to be a tenant on others' chains
Why Tokenized Stocks Are Booming in 2026 While Crypto Is Still Struggling
Former ByteDance employee's account: How I started with two Pinduoduo hard drives and made six times the profit with Seagate to achieve financial freedom?
MiCA reshuffle begins, Binance temporarily bids farewell to the EU
How does Gate redo "buying and selling stocks" from the cryptocurrency world to the stock market?
Visa and Mastercard join 140 giants to launch a new stablecoin, but the impact on the market landscape may still be limited
Circle CEO responds to OUSD's challenge: Stablecoins are a winner-takes-all business, and we will not slow down
Argentina vs Cape Verde: When a Record-Breaking Legend Meets an Unbreakable Underdog
WEEX exclusive pre-match analysis of Argentina vs Cape Verde, exploring Messi-led Argentina’s dominance and Cape Verde’s historic defensive breakout, with a breakdown of volatility, structure, and match dynamics.
