Stocks to watch today: Jio Platforms' $3.1 billion India-record initial public offering is set to debut on Dalal Street today.
Persistent price pressures complicate the Fed's rate outlook as energy costs, tariffs and AI-led spending sustain demand
Federal Reserve Chairman Kevin Warsh said Friday he won't prejudge what the US central bank will do about interest rates at its upcoming meetings in October and December. The Fed increased its key interest rate by a quarter-point to about 3.9 per cent in September, its first increase in three years, and stubbornly elevated US inflation will likely lead it to hike that rate again in coming months to slow spending and help cool price pressures. But Warsh offered no fresh signals during a "fireside chat" with International Monetary Fund Managing Director Kristalina Georgieva at a meeting of financial leaders in Bangkok. "At the Federal Reserve, we made very clear that we would deliver price stability, and we removed a dose of accommodation about a month ago," Warsh said. "I don't prejudge meetings. I don't believe in saying now what I might do at the meetings that we have in the balance of this year." The Fed's September rate hike defied US President Donald Trump's repeated calls for
Both central banks in the coming days will release minutes of the meetings last month at which they raised benchmark rates, bowing to concerns about mounting inflationary pressures
US employers added just 29,000 jobs in September, well below expectations, while the unemployment rate rose to 4.2 per cent, weakening the case for an October rate hike
The Fed watchdog's report, however, did highlight extensive problems with project oversight that contributed to a roughly $1 billion cost overrun for the renovation of the central bank's 2 buildings
Global uncertainty and interest rates may remain elevated
Experts said that the key point is not the size of the increase, but the change in direction, and expect the RBI to consider 50bps hikes in both the October and December policy meetings this year
It's the first policy shift under the new Fed chief, who took office in late May after being selected by Trump with an expectation that he would cut rates
Markets see an 85 per cent chance of a quarter-point increase as hotter inflation and oil above $100 test Fed Chair Kevin Warsh's stance on rates and forward guidance
Trump said the US should have the lowest interest rates in the world, days before the Federal Reserve's policy meeting amid persistent inflation
3 decisions, starting with the Federal Reserve on Wednesday and followed on successive days by peers in the UK and Japan, may recast the global monetary policy landscape for rest of 2026 and beyond
Domestically, the dollar was whipsawed by a shifting Fed outlook through the week, leaving gold caught between a structurally softer greenback and rising rate-hike probability.
The CME FedWatch tool signals that market participants are pricing in a 58 per cent chance of a hike, as against 45 per cent a month ago.
Asian shares rose as investors awaited key US jobs data, while the yen rallied 2.6% this week after Fed Governor Christopher Waller eased fears of a rate hike
The dollar held firm near a two-week high after Kevin Warsh's hawkish remarks lifted expectations of a September rate hike, while the yen slipped below 160 per dollar
Warsh used a keynote speech to hammer home a message that curbing inflation is the central bank's top priority
Economists estimate the monthly jobs report from the Bureau of Labor Statistics on Friday will show a 55,000 increase in payrolls after an unexpected dip in July employment
Markets expect the Fed will raise rates in December as inflation remains elevated, while a sharp rise in bond yields indicates that investors are also pricing in some chance of a September move
Spot gold was up 0.9 per cent at $4,643.63 per ounce, as of 0644 GMT, the highest level since mid May. Prices gained more than 5 per cent last week