-
Our latest views on the major central banks
After cutting the policy rate by 75bp over the final three FOMC meetings of 2025, the Federal Reserve held steady in January and signalled that it saw little need for additional near-term action given that inflation remained above target and, in its view, the downside risks to the jobs market had receded. While the US imports little energy from the Middle East, it faces higher domestic oil, gas and electricity prices following the military action against Iran. This will delay inflation returning to 2%. In terms of growth, higher prices may be a boost for the US energy sector, but higher energy costs will squeeze ... (full story)