Fed's Kashkari Says December Cut Will Depend on Data

Fed's Kashkari Says December Cut Will Depend on Data By Vicky Ge Huang

Minneapolis Fed President Neel Kashkari says coming economic data will determine whether the Federal Reserve should cut rates again in December.

"The expectation is that we would do another interest-rate cut in December. We need to see what the data actually looks like before reaching any conclusions," Kashkari said on CBS's "Face the Nation."

"That's six weeks from now. But I think another rate cut is certainly possible," Kashkari said. He isn't a voting member of the rate-setting committee this year.

Asked about how the Fed would respond to a combative Trump administration, Kashkari said that legal safeguards ensure the central bank's independence.

Meanwhile, in the U.K., the Bank of England's chief economist said this morning that the central bank still has some work to do to tame inflation.

Bank of Finland Gov. Olli Rehn said Europe must be better positioned to respond to a new trade war than during Donald Trump's first term.

And in Asia, former Bank of Japan policy board member Takahide Kiuchi spoke with The Wall Street Journal about how he thinks the central bank will navigate the political headwinds facing Japan.

Top News BOE Chief Economist Says Still Some Work to Do to Tame Inflation

The Bank of England still has some way to go before it can celebrate having tamed inflation, its chief economist said Tuesday.

The central bank lowered its key interest rate for a second time last week, responding to a decline in the rate of inflation over recent months.

Europe Must Not Be 'Unprepared' For Trade War, ECB's Rehn Says

Higher barriers to trade would have a negative impact on the global economy, and Europe must be prepared for increased tensions, Bank of Finland Governor Olli Rehn said Tuesday.

Former BOJ Member Weighs in on Political Headwinds Facing BOJ

Recent elections in Japan and the U.S. have complicated views on the timing of the Bank of Japan's next move. Takahide Kiuchi, a BOJ policy board member between 2012 and 2017, spoke with The Wall Street Journal about how he thinks the bank will navigate the political waters .

U.S. Economy Trump Victory Leaves U.S. Farmers With Questions

U.S. farmers are warily waiting for President-elect Donald Trump to take office in January and see what policies around trade, tariffs, funding and energy will be enacted during his term. While they're in wait-and-see mode, experts and analysts are expressing concerns over potential trade wars, and crop insurance.

Wall Street Welcomes Back Fatter Bonuses

Wall Street bonuses are on the rise for the first time in three years. How big a pay bump bankers and traders get will depend on the type of work they do. Those who work in the hot market for bond sales are set to see their bonuses jump by as much as 35%, according to a study by Johnson Associates, an industry pay consultant.

Real-Estate Scions Are Breaking a Cardinal Rule: Never Sell

The office market's severe downturn is forcing some of the city's multigenerational family owners to do something they managed to avoid during world wars, financial meltdowns and a global pandemic: Sell their core properties .

The Sickest Patients Are Fleeing Private Medicare Plans

A Wall Street Journal analysis of Medicare data found a pattern of Medicare Advantage's sickest patients dropping their privately run coverage just as their health needs soared, shifting costs from insurers to taxpayers .

Financial Regulation Gary Gensler's Ambitious SEC Agenda Could Be Near Its End

Donald Trump's election win means the almost certain end of Gary Gensler's leadership of the Securities and Exchange Commission and the ambitious agenda he forged, which garnered plaudits from some as well as resentment from many business leaders, cryptocurrency entrepreneurs and even farmers.

Bitcoin Price Nears $90,000 After Trump Win

Bitcoin price edged close to $90,000 early Tuesday as the postelection rally continues. Investors are betting that former President Donald Trump's second term will boost cryptocurrencies because he has suggested more favorable regulation. (Barron's)

FTX to Binance: Please Pay Us Back $1.8 Billion

FTX's bankruptcy estate sued Binance to recover almost $1.8 billion that Sam Bankman-Fried spent buying back stakes that his one-time rival owned in his cryptocurrency exchange.

Forward Guidance Tuesday (all times ET)

10 a.m.: RCM/TIPP Economic Optimism Index

10:15 a.m.: Richmond Fed President Tom Barkin speaks at the Baltimore Together Summit

5 p.m.: FRB Philadelphia President Patrick Harker speech on 'Fintech, AI and the Changing Financial Landscape'

Wednesday

8:30 a.m.: CPI

9 a.m.: SEC Small Business Advisory Committee

10 a.m.: Online Help Wanted Index

11 a.m.: Federal Reserve Bank of New York Q3 Household Debt and Credit Report published

Research Trump Policies Could Spark Stock-Market Boom

Trump deregulation and tax cuts could push the S&P500 to 10000 by the end of the 2020s, analysts at Yardeni Research write. A corporate tax cut could lift the S&P 500 index's profit margin to 13.9% in 2025 and 14.9% in 2026, new record highs, Yardeni projects. Yardeni's decade-end call for the S&P to reach 10000 implies roughly 66% growth in the index over the next five years, or a price return of roughly 10.75% a year. The forecast includes many optimistic assumptions about the Trump administration, including that "the wars between Russia and Ukraine and in the Middle East are resolved sooner rather than later" and that "Elon Musk will succeed in slowing the growth in federal government spending." - Matt Grossman

Basis Points U.K. wages rose at a slower pace in September, opening the way for further rate cuts from the Bank of England. The BOE last week lowered its key interest rate for a second time this year, and said more cuts were likely if inflation shows signs of settling at its target. (WSJ) The U.K.'s Debt Management Agency sold 2.25 billion pounds, equiavlent to around $2.90 billion, in October 2043, dated gilts at an auction on Tuesday, it said. (Dow Jones Newswires) Investors might move out of German government bonds to U.S. and U.K. peers amid the collapse of Germany's governing coalition, Mediolanum International Funds' head of fixed income Daniel Loughney said. (DJN) Mexican President Claudia Sheinbaum is open to more private investment in the electricity sector as her government seeks to meet increased energy needs with a focus on renewables while recovering state dominance over the industry. (WSJ) South Korea's state-run think tank has cut its growth and inflation forecasts for the country this year and next year amid weakening export growth. (WSJ) About Us

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Vicky Ge Huang in New York. Send your tips, suggestions and feedback to [[e-mail]].

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

11-12-24 0720ET