Aurelia Butler

“It’s still a reasonable consideration,” Kashkari said in a Bloomberg TV interview. “Right now, knowing what I know today, still considering a 25-basis-point cut in December – it’s a reasonable debate for us to have.”The Fed began cutting interest rates in September after gaining confidence that inflation would continue to fall, and in response to worries that high borrowing costs were slowing the job market too quickly. Since then inflation’s progress toward the Fed’s 2% goal appears to have slowed. After cutting rates again early this month Fed policymakers have openly puzzled over how much lower they should take the policy rate, now in the 4.75%-5.00% range. Kashkari told Bloomberg that he is trying to understand how much downward pressure borrowing costs are having on the economy, and where inflation is going. “I have some confidence that it’s gently trending down, and right now the labor market remains strong,” Kashkari said.Fed policymakers will get a fresh report on its targeted inflation gauge this Wednesday, and will have the latest monthly job-market readout and a report on consumer prices in hand before their next meeting, on Dec. 17-18. More

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Annual shop price deflation of 0.6% in the 12 months to November followed a 0.8% drop in the 12 months to October, the BRC said.Its measure of shop price inflation dropped between May 2023 and July this year after which it fell further into deflation, until now.”With significant price pressures on the horizon, November’s figures may signal the end of falling inflation,” Helen Dickinson, BRC’s chief executive, said. Official figures last week showed consumer price inflation rose to 2.3% in October, largely reflecting a surge in household energy prices.The Bank of England this month cut interest rates to 4.75% from 5% but said it was likely to move only gradually with further cuts. On Monday, BoE Deputy Governor Clare Lombardelli expressed concern about the risk of stronger price growth than forecast.The BRC’s Dickinson said prices would increase as stores pass on higher staffing costs including in finance minister Rachel Reeves’ budget last month. Reeves on Oct.30 announced a 25 billion-pound ($31.53 billion) rise in social security contributions by employers alongside a 6.7% uplift in the minimum wage.The BRC survey showed food inflation fell to 1.8% from 1.9% in October. Prices of non-food items fell by 1.8%, a less severe drop than October’s 2.1% decrease.A separate survey from British supermarket Asda on Monday said a drop in households’ disposable income and rising inflation could subdue Christmas spending. ($1 = 0.7930 pounds) More

Kashkari said policymakers were still considering a 25 bps rate reduction in the Fed’s final meeting for the year. “It’s still a reasonable consideration,” he told Bloomberg TV. “Right now, knowing what I know today, still considering a 25-basis-point cut in December — it’s a reasonable debate for us to have.”Kashkari’s comments come amid some doubts over whether the Fed will cut rates again in December, especially as recent economic readings showed stickiness in inflation and resilience in the U.S. economy. The labor market was also seen running strong in recent weeks.Fed Chair Jerome Powell had struck a cautious note during a recent address, sparking more doubts over a December cut, which will bring the Fed’s total rate cuts to 1% in 2024. Traders were seen pricing in a 61.3% chance for a 25 basis point cut in December, and a 38.7% chance rates will remain unchanged, according to CME Fedwatch.  More

Speaking to reporters in Brasilia, Haddad said the last step remaining before publicly announcing the package’s measures would be discussing it with leaders in Congress. Expectations regarding the package have been driving volatility in trading of the Brazilian real in the last few weeks, as investors wait to see if the measures would address concerns over Brazil’s fiscal stability. “(The announcement) is now dependent on the presidential palace getting in touch with the Senate and the lower house,” Haddad said, adding measures already in Congress could be added to the deal. Haddad confirmed that he still believes the package could be approved by Congress this year. More

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Unifor, which represents more than 3,600 members at the railroad’s Council 4000 and Local 100 committees, said members voted “overwhelmingly” in favor of the strike action. “CN is committed to reaching negotiated agreements with Unifor that are good for employees, customers, and the economy,” said Ashley Michnowski, a spokesperson for Canadian National. Unifor, which represents CN Rail’s car technicians and heavy duty mechanics among other workers, said negotiations with the railroad will resume from Nov. 30 to Dec. 8 in Montreal. The union had initiated negotiations with CN Rail in September, with bargaining priorities that included higher wages, addressing concerns about the pension plan and job security for its members. More