‘Hawkish’ Fed cut likely as inflation risks limit future easing

The Federal Reserve is set to implement a third consecutive interest-rate cut, signaling a potential shift in monetary policy as officials prepare for their upcoming meeting. This decision comes amidst ongoing economic uncertainty and inflation concerns, which have influenced the Fed's deliberations on interest rates.

Silver prices have extended gains, surpassing $60 an ounce for the first time, driven by traders' expectations of further monetary easing from the Federal Reserve and ongoing supply constraints. This surge reflects a significant increase in demand for the metal as investors seek safe-haven assets amid economic uncertainty.

Asian stocks saw a modest increase in early trading, following a lackluster session on Wall Street, as investors remain on edge awaiting insights into the Federal Reserve's interest rate decisions for the year. This cautious optimism reflects a broader sentiment in the markets as traders prepare for potential shifts in monetary policy.

Bond traders are expressing skepticism regarding the likelihood of extended interest rate cuts by the Federal Reserve beyond December, indicating a shift in market sentiment towards a shallower path of monetary easing. This comes amid ongoing discussions about the balance between a weakening labor market and rising inflation, which have created uncertainty in economic forecasts.

Treasuries declined following a report indicating that US job openings exceeded expectations, underscoring the challenges faced by Federal Reserve policymakers as they approach a decision on interest rates this week. This development reflects ongoing tensions in the labor market and its implications for monetary policy.

Silver prices have surpassed $60 an ounce for the first time, driven by traders' expectations of further monetary easing from the Federal Reserve and ongoing supply constraints. This surge in silver prices is accompanied by a notable increase in gold prices, reflecting a broader trend in precious metals markets.

The rapid growth of demand for artificial intelligence (AI) has led to speculation among investors, raising questions about whether the current market dynamics represent a bubble. The unpredictable nature of AI demand has prompted concerns about the sustainability of investments in this sector.

US equities showed small fluctuations as investors remained cautious ahead of critical announcements from the Federal Reserve and Oracle regarding interest rates and corporate performance. This indecision reflects a broader trend as traders weigh their options heading into 2026.