One of the World’s Biggest Bond Fund Managers Warns of `Dangerous’ Credit-Ratings Dynamic

US stocks showed modest gains early Monday as traders anticipate a widely expected interest-rate cut from the Federal Reserve later this week, following its final meeting of 2025. This cautious optimism reflects ongoing market adjustments to economic indicators and monetary policy expectations.

The Federal Reserve is convening for its final meeting of the year to deliberate on a potential interest rate cut, amidst a backdrop of economic uncertainty and inflation concerns. This meeting is particularly significant as it may result in a third consecutive rate cut, reflecting the Fed's cautious approach under the leadership of Jay Powell.

Gold prices have risen as expectations for a Federal Reserve rate cut increase, following a U.S. inflation indicator that aligned with market predictions, according to ANZ Research. This development suggests a growing sentiment among investors favoring gold as a safe-haven asset amidst economic uncertainty.

The bond market has reacted unusually to the Federal Reserve's recent interest-rate cuts, with Treasury yields rising despite the central bank's decision to lower rates, a phenomenon not observed since the 1990s. This divergence has sparked significant debate among traders and analysts on Wall Street.

Federal Reserve Chair Jerome Powell is poised to advocate for a quarter-point interest rate cut this week, despite increasing concerns among policymakers regarding persistently high inflation. This anticipated decision reflects ongoing debates within the Federal Reserve about the balance between stimulating economic growth and controlling inflation.

Redfin has reported a significant shift in the housing market, indicating that American homebuyers are facing affordability challenges as the average 30-year fixed mortgage rate stands at 6.19%. This trend suggests a growing imbalance with more sellers than buyers, marking 2025 as a notably strong buyer's market.

Futures for silver have reached a new record high, buoyed by the Federal Reserve’s inflation metric remaining below 3% in September. This surge reflects a growing investor confidence in precious metals amid shifting economic indicators.

The Federal Reserve is expected to announce a cut in interest rates next week, following disappointing U.S. jobs data that has raised concerns about the labor market. This anticipated decision comes amidst ongoing speculation and discussions among Fed officials regarding the appropriate monetary policy response to current economic conditions.