Recently, officials from the Federal Reserve have been making statements suggesting that interest rates might remain at their current levels for an extended period. Susan Collins, President of the Federal Reserve Bank of Boston, indicated that due to significant uncertainties in the U.S. economic outlook, the Fed might slow down its pace of rate adjustments. This view is supported by other Federal Reserve presidents and Board Governor Michelle Bowman. Bowman noted that the persistent risk of inflation makes it especially necessary to slow down the rate-cutting process. She stated that she remains inclined towards a cautious and gradual policy adjustment approach.
Meanwhile, Sarah Breeden, Deputy Governor of the Bank of England, also delivered remarks expecting the Bank of England to continue cutting rates and warned that economic growth prospects might weaken. In her speech at the University of Edinburgh Business School, Breeden asserted that recent economic data supports further easing of monetary policy. She added that although signs indicate economic activity is starting to slow down, the economy is expected to rebound in the short term.
In the global financial markets, investor expectations regarding interest rate policies continue to influence market trends. The Federal Reserve's stance undoubtedly has a significant impact on the dollar and global financial markets, while the Bank of England's rate cut expectations place pressure on the pound and the UK bond market.
Additionally, the donations by U.S. companies for Trump’s inauguration have also caught market attention. Major companies such as Google, Amazon, and OpenAI have contributed to Trump’s inaugural fund, hoping to establish positive relations with the new administration.
Airbus delivered 766 jets in 2024, nearing its set target and marking the highest delivery volume in six years. Meanwhile, Citibank has raised its price forecast for Brent crude oil for the first quarter, predicting a further rise in oil prices after Trump's inauguration. Deutsche Bank believes that there is still room for further short covering of the pound, suggesting that the weakening of the pound might be a natural process of rebalancing.
