Rate Cut Bets Strong Despite Strong Jobs Data

Despite a better-than-expected job market update from the U.S., expectations for a Fed rate cut in December remain strong. Initial Jobless Claims decreased to 191,000, beating market expectations. Wall Street Futures and European benchmarks are up, while Asian markets closed mostly positive. The Dollar Index is flat, and ten-year bond yields have mostly risen. Crude oil prices increased, gold prices declined, and cryptocurrencies extended gains.

Fed 2025 Rate Cuts: Impact On Banks And Fintech

The Federal Reserve's anticipated rate cuts in 2025 are expected to impact borrowing costs, deposit yields, and lending strategies across banks and fintech. Despite signals of easing, market pricing is slow to adjust, affecting bank margins and deposit rates. Mortgage rates have slightly decreased, but affordability remains strained. Fintech lenders are selectively lowering APRs, while small-business lending remains tight. The Fed's decisions and future guidance will influence pricing adjustments into 2026.

Economist Mohamed El-Erian criticizes Federal Reserve for policy missteps and internal dysfunction, calls for sweeping reforms. Fed's credibility at risk.

Economist Mohamed El-Erian criticizes the Federal Reserve for policy missteps and internal dysfunction, calling for sweeping reforms. He stresses the need for broader reforms beyond short-term decisions like rate cuts. El-Erian highlights Cleveland Fed President Loretta Mester's admission of mistakes within the central bank, indicating internal acknowledgment of necessary changes to improve forecasting and operations. His comments were made on CNBC's "Squawk Box."

Guggenheim CIO thinks Fed has room to cut rates in December

Anne Walsh, CIO of Guggenheim Partners Investment Management, believes the U.S. economy is slowing but current GDP aligns with historical growth trends. She suggests the Fed has room to cut rates in December and anticipates further rate cuts in 2026, moving to neutral.

The Hang Seng Index main continuous night session closed up 0.34%, at 25,829 points. The Hang Seng TECH Index main continuous night session closed up 0.33%, at 5,548 points