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monetary-policy

RBI Rate Cut Transmission Slows in May 2026

RBI data through May 2026 shows that its 85 basis point repo rate cuts since February 2025 are only partially reaching borrowers, with lending rate transmission described as moderated. Slower pass-through limits relief for loan holders and may pressure the RBI to cut rates further to achieve its growth goals.

Alan Greenspan, Former Fed Chair, Dead at 100

Alan Greenspan, who led the US Federal Reserve from 1987 to 2006 under four presidents, has died at 100. His tenure defined modern central banking but also drew lasting criticism for regulatory failures that contributed to the 2008 financial crisis.

Inflation topped 4% in May as CPI surged to highest level in 3 years

U.S. consumer prices rose at a 4.2% annual rate in May, the fastest pace in three years, driven by a spike in energy costs. The reading puts pressure on the Federal Reserve to respond, with potential knock-on effects for interest rates, borrowing costs, and household purchasing power.

Trump Picks Kevin Warsh as Next Fed Chair

President Trump named Kevin Warsh as his Federal Reserve Chair pick, calling him 'fantastic' and saying he wants Warsh to set interest rates without White House pressure. Warsh, a former Fed governor with hawkish inflation instincts, could keep borrowing costs higher for longer than markets expect.

India Bonds Slip Before RBI Rate Decision Friday

Indian government bonds slipped Thursday as traders awaited the Reserve Bank of India's rate decision on Friday. Markets expect a pause, but Standard Chartered, Capital Economics, ANZ, MUFG, and OCBC all forecast a 25-basis-point hike, while rising oil prices add inflation risk.

Strong Jobs Data Keeps Fed on Hold Amid Inflation Risk

A strong U.S. jobs report removes near-term pressure on the Federal Reserve to cut interest rates. War-driven supply disruptions and rising energy prices are now the bigger inflation threat, keeping rate cuts off the table.

Bank of America Sees No Fed Rate Cuts Until 2027

Bank of America economists now expect the Federal Reserve to hold rates steady through 2025 and 2026, with the first cut not coming until 2027. The forecast, driven by a hawkish Fed stance and sticky inflation, would keep borrowing costs high for mortgages, business loans, and consumer credit far longer than markets

Fed's Hammack Signals Rates on Hold for Extended Period

Cleveland Fed President Beth Hammack said interest rates will stay on hold for an extended period, citing high economic uncertainty and a risk that an "inflationary mindset" becomes entrenched after five years of sharp price increases.

Powell and Warsh Face Rare Fed Chair Overlap

Jerome Powell and Kevin Warsh are set to share the Fed's policy table for the first time a sitting and former chair have done so in nearly 80 years. Any public disagreement between the two could disrupt market expectations on interest rates and Fed credibility.

Kashkari: Iran War Would Cloud Fed Rate Guidance

Minneapolis Fed President Neel Kashkari said a war involving Iran would constrain the Fed's ability to provide clear interest rate guidance. Geopolitical shocks that disrupt oil supply and stoke inflation make it harder for the Fed to commit to any rate path, raising uncertainty for markets and borrowers.

Kashkari Warns Rate Hikes May Return If Inflation Rises

Minneapolis Fed President Neel Kashkari said further US interest rate hikes "could be warranted" if the Middle East conflict worsens inflation, likely through higher energy prices. The comments push back against market expectations of rate cuts and signal the Fed remains open to tightening if price pressures resurface.

Fed Expected to Hold Rates at Powell's Possible Last Meeting

The Federal Reserve meets this week and is expected to hold interest rates steady, with elevated energy prices and the unresolved Iran conflict clouding the economic outlook. The meeting may also be Jerome Powell's last as Fed chair, adding leadership uncertainty to an already complex policy moment.

Fed Dissenters Reject Statement Hinting at Future Rate Cut

Federal Reserve officials who voted against this week's post-meeting statement said they objected to language that implied the central bank's next rate move would be a cut. Their dissent is about forward guidance, the words the Fed uses to steer market expectations, not the rate decision itself. The split signals an internal disagreement over how soon and how clearly the Fed should point toward easing.

Cleveland Fed's Hammack Dissents on Rate Cut Signal

Cleveland Fed President Beth Hammack dissented against the Fed's easing bias this week, saying it is no longer appropriate given uncertainty about the economic and inflation outlook. The easing bias signals a rate cut is the likely next move, and markets price assets around that expectation.

Record Low Rupee Forces RBI Rate Hike Rethink

The Indian rupee has hit a record low as surging energy import costs widen the trade deficit and push capital out of the country. This puts the Reserve Bank of India under pressure to raise interest rates despite preferring a pause, which would raise borrowing costs for businesses and consumers.

Fed Holds Rates Steady at Powell's Final Meeting

The US Federal Reserve kept interest rates unchanged at 3.5, 3.75 percent, citing inflation concerns and global economic pressure. The decision came at what is expected to be Jerome Powell's final meeting as Fed chair. A leadership transition at the Fed could shift how future rate decisions are made.

Fed Holds Rates, Dissent Hits 32-Year High

The Federal Reserve kept interest rates unchanged but logged its highest level of internal dissent since 1992. That level of disagreement among policymakers signals a real split on the path ahead for rates. Markets will watch closely for clues on whether a policy shift may come sooner than expected.

Fed Holds Rates as Four Officials Dissent

The U.S. Federal Reserve kept interest rates unchanged but faced four internal dissents, an unusually high level of disagreement. Three officials wanted to drop language hinting at future cuts, while Stephen Miran pushed for an immediate cut. The split puts future rate guidance firmly in play.

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Tag

monetary-policy

Rate cuts transmission moderated in May 2026: RBI

RBI data through May 2026 shows that its 85 basis point repo rate cuts since February 2025 are only partially reaching borrowers, with lending rate transmission described as moderated. Slower pass-through limits relief for loan holders and may pressure the RBI to cut rates further to achieve its growth goals.

6d ago · 3 min · Economy

Former US Fed chairman Alan Greenspan passes away at 100

Alan Greenspan, who led the US Federal Reserve from 1987 to 2006 under four presidents, has died at 100. His tenure defined modern central banking but also drew lasting criticism for regulatory failures that contributed to the 2008 financial crisis.

7d ago · 3 min · Global Affairs

Inflation topped 4% in May as CPI surged to highest level in 3 years

U.S. consumer prices rose at a 4.2% annual rate in May, the fastest pace in three years, driven by a spike in energy costs. The reading puts pressure on the Federal Reserve to respond, with potential knock-on effects for interest rates, borrowing costs, and household purchasing power.

19d ago · 3 min · Economy

Trump on new Fed Chair Warsh: ‘I don’t want to have a big influence on him’

President Trump named Kevin Warsh as his Federal Reserve Chair pick, calling him 'fantastic' and saying he wants Warsh to set interest rates without White House pressure. Warsh, a former Fed governor with hawkish inflation instincts, could keep borrowing costs higher for longer than markets expect.

21d ago · 3 min · Economy

India bonds slip ahead of RBI policy as war risks lift oil

Indian government bonds slipped Thursday as traders awaited the Reserve Bank of India's rate decision on Friday. Markets expect a pause, but Standard Chartered, Capital Economics, ANZ, MUFG, and OCBC all forecast a 25-basis-point hike, while rising oil prices add inflation risk.

24d ago · 3 min · Markets

Fed unlikely to cut interest rates until 2027, Bank of America says

Bank of America economists now expect the Federal Reserve to hold rates steady through 2025 and 2026, with the first cut not coming until 2027. The forecast, driven by a hawkish Fed stance and sticky inflation, would keep borrowing costs high for mortgages, business loans, and consumer credit far longer than markets

1mo ago · 2 min · Economy

Kashkari says Iran war limits Fed's ability to provide rate guidance

Minneapolis Fed President Neel Kashkari said a war involving Iran would constrain the Fed's ability to provide clear interest rate guidance. Geopolitical shocks that disrupt oil supply and stoke inflation make it harder for the Fed to commit to any rate path, raising uncertainty for markets and borrowers.

1mo ago · 2 min · Global Affairs

US Fed official says rate hikes may be needed if inflation surges 

Minneapolis Fed President Neel Kashkari said further US interest rate hikes "could be warranted" if the Middle East conflict worsens inflation, likely through higher energy prices. The comments push back against market expectations of rate cuts and signal the Fed remains open to tightening if price pressures resurface.

1mo ago · 2 min · Economy

Fed likely to hold rates steady as Powell prepares for possible swan song

The Federal Reserve meets this week and is expected to hold interest rates steady, with elevated energy prices and the unresolved Iran conflict clouding the economic outlook. The meeting may also be Jerome Powell's last as Fed chair, adding leadership uncertainty to an already complex policy moment.

1mo ago · 2 min · Economy

Fed dissenters explain 'no' votes, saying they disagreed with hinting next move would be a cut

Federal Reserve officials who voted against this week's post-meeting statement said they objected to language that implied the central bank's next rate move would be a cut. Their dissent is about forward guidance, the words the Fed uses to steer market expectations, not the rate decision itself. The split signals an internal disagreement over how soon and how clearly the Fed should point toward easing.

2mo ago · 2 min · Markets

Fed's Beth Hammack says no longer appropriate to signal rate cut bias

Cleveland Fed President Beth Hammack dissented against the Fed's easing bias this week, saying it is no longer appropriate given uncertainty about the economic and inflation outlook. The easing bias signals a rate cut is the likely next move, and markets price assets around that expectation.

2mo ago · 1 min · Markets

The rupee at record low will end India’s cheap-money era

The Indian rupee has hit a record low as surging energy import costs widen the trade deficit and push capital out of the country. This puts the Reserve Bank of India under pressure to raise interest rates despite preferring a pause, which would raise borrowing costs for businesses and consumers.

2mo ago · 1 min · Markets

US Fed holds rates steady in Powell’s final meeting as Fed chair

The US Federal Reserve kept interest rates unchanged at 3.5, 3.75 percent, citing inflation concerns and global economic pressure. The decision came at what is expected to be Jerome Powell's final meeting as Fed chair. A leadership transition at the Fed could shift how future rate decisions are made.

2mo ago · 1 min · Global Affairs

Fed holds rates steady but with highest level of dissent since 1992

The Federal Reserve kept interest rates unchanged but logged its highest level of internal dissent since 1992. That level of disagreement among policymakers signals a real split on the path ahead for rates. Markets will watch closely for clues on whether a policy shift may come sooner than expected.

2mo ago · 1 min · Markets

U.S. Fed holds rates steady even as four officials dissent

The U.S. Federal Reserve kept interest rates unchanged but faced four internal dissents, an unusually high level of disagreement. Three officials wanted to drop language hinting at future cuts, while Stephen Miran pushed for an immediate cut. The split puts future rate guidance firmly in play.

2mo ago · 1 min · Global Affairs