#interest rates

#interest rates

When pressed by reporters on why hiring has slumped, Powell responded: "That's much more about the change in immigration," He continued, "The supply of workers has obviously come way down. There's very little growth, if any, in the supply of workers. And at the same time, demand for workers has also come down quite sharply, and to the point where we see what I've called a curious balance."

European markets opened higher on Wednesday, supported by a rebound in SAP and growing investor optimism ahead of the Federal Reserve's policy decision later in the day. However, the market could remain at risk as investors could remain cautious. SAP led gains in the index, advancing nearly 4% in early trading after upbeat management commentary helped allay recent concerns over its cloud segment.

The European Central Bank left interest rates unchanged Thursday with inflation back under control and the economy weathering Trump's tariff onslaught better than expected. The bank's rate-setting council left its benchmark deposit rate unchanged at 2% at a meeting at its skyscraper headquarters in Frankfurt. The focus in Europe has shifted to the fiscal crisis in France and any possible role for the ECB in containing potential market turmoil that could erupt from the country's out-of-control deficit and political logjam.

As expected, inflation ticked slightly higher during August with rising housing, food and energy costs leading the way. Core inflation however remained stable, ensuring a rate cut in September is now a forgone conclusion. The Federal reserve having been in wait and see mode since December 2024 has been given the green light today to cut rates. Inflation has not seen large upside surprises from tariff turmoil and with recent revisions to jobs data showing almost 1 million fewer jobs than previously thought,

The move is a chilling escalation of Trump's weaponization of the DOJ against perceived political opponents. It's also part of an obvious and long-standing effort to gain control of the Fed. Like the politicization of law enforcement, seizing power over the central bank is a power grab straight out of the authoritarian playbook, and one with predictable, ugly outcomes for America's economy and democracy.

Wall Street is holding steady Thursday as the countdown ticks to an update on the U.S. job market coming Friday that could clear the way for the cuts to interest rates that investors love. The S&P 500 was virtually unchanged in morning trading. The Dow Jones Industrial Average was down 52 points, or 0.1%, as of 10:10 a.m. Eastern time, and the Nasdaq composite was flat.

Fed Chair Jerome Powell hinted at potential rate cuts in September, which could lead to an increase in home renovation spending rather than a surge in home sales due to persistently high mortgage rates. The focus shifts to Home Equity Lines of Credit as they are influenced more directly by short-term rates and could see reduced costs, allowing homeowners to tap their equity for long-delayed renovations and improvements.

One very positive item for investors when earnings season rolls around every quarter is that the big money center and investment banks are always among the first to report. This year was no different, as all the major financials were released early and, for the most part, all delivered outstanding numbers. As with all sectors, the tariffs are weighing on sentiment and affecting companies' ability to provide forward guidance that they feel comfortable with.

Gen Z and Millennials have largely come of age in a period of high housing costs and volatile mortgage rates, yet they are more likely than older generations to believe conditions will hold steady or even improve. That optimism could be a powerful driver of housing demand in the years ahead, as younger buyers remain motivated to enter the market despite ongoing affordability challenges.