NewsNews

Finance news

  1. 1

    Federal Reserve raises interest rates for the first time since 2023

    The Federal Reserve raised its benchmark rate by a quarter of a percentage point on Wednesday, putting rates between 3.75% and 4%, in an effort to contain a monthslong surge in inflation set off by the Iran war. The board voted unanimously, including Trump-appointed Chair Kevin Warsh, and the move follows three dissenters at the July meeting who had favored a hike. Prices rose 3.4% in August from a year earlier, and oil above $105 a barrel and gasoline at $4.36 have added pressure. President Donald Trump criticized the decision, calling for lower rates and saying the Fed acted for political reasons, though he said he still relied on Warsh. Stock indexes fell after the announcement, with the Dow closing down 630 points.

    Key facts

    • Federal Reserve raised its benchmark rate by a quarter of a percentage point on Wednesday
    • Rates now sit between 3.75% and 4%, the first increase since July 2023
    • The 12-member board voted unanimously, including Trump-appointed Chair Kevin Warsh
    • August consumer prices rose 3.4% from a year earlier, per federal government data
    • Dow Jones Industrial Average closed down 630 points, or 1.2%, after the announcement

    Commentary

    The rate hike was the predictable part; what matters is that the Fed's unanimous vote came from a board that had split in July, suggesting Warsh has brought the committee behind his priority on prices. Trump's public attack on the decision, even as he says he still backs Warsh, exposes the tension between White House expectations and an inflation problem driven by the Iran war. Consumers with credit cards, mortgages and gasoline bills are the ones likely to absorb the cost of the fight against prices.

    Sources: ABC News - Breaking News, Latest News and Videos, Fox News

  2. 2

    China's economy grows 4.5% in third quarter on strong exports as domestic demand lags

    China's economy grew 4.5% year on year in the July-September quarter, the National Bureau of Statistics said on Monday, up from 4.3% in the second quarter and above the 4.41% consensus forecast of economists surveyed by Wind. Growth for the first nine months was 4.6%, placing the economy near the lower end of Beijing's 4.5-5% annual target. Exports, especially AI-related chips, electronics and green-tech products, drove the expansion, with exports up 36.3% in September. Domestic weakness persisted: fixed-asset investment fell 7.2% in the first nine months and property investment plunged 20.2%. Retail sales rose 1.1% in September, the fastest growth since March. Mao Shengyong of the NBS said insufficient domestic demand remained a problem.

    Key facts

    • China's economy grew 4.5% year on year in the third quarter, up from 4.3% in the second quarter.
    • Growth for the first three quarters of 2026 reached 4.6%, per the National Bureau of Statistics.
    • Exports rose 36.3% in September from a year earlier, the biggest jump since early 2021.
    • Fixed-asset investment fell 7.2% in the first nine months; property investment plunged 20.2%.
    • Retail sales grew 1.1% in September, after 0.4% in August.

    Commentary

    The headline growth figure is the predictable part; the real story is that exports are carrying an economy whose consumers and property sector remain weak. Economist Max Zenglein of The Conference Board argued the headline number is an increasingly poor guide to conditions, since it masks widening disparities. Meeting the target this way leaves Beijing facing the harder task of domestic rebalancing, and the trade surplus gains will keep feeding foreign pressure.

    Sources: CNN, ABC News - Breaking News, Latest News and Videos, South China Morning Post, TradingView

  3. 3

    US inflation rises to 3.7% in September as energy costs surge

    US consumer prices rose 0.6% in September and were 3.7% higher than a year earlier, up from 3.4% in August and above what many economists had expected, according to Yahoo Finance's reading of Bureau of Labor Statistics data. Energy drove much of the increase. Sarah, a Ph.D. economist who posts as a TikTok creator, said gasoline and home heating costs climbed sharply and warned that refinery damage could keep fuel prices high even if crude falls. Thomas Simons of Jefferies called the latest data much worse than expected, pointing to shelter and core goods, and said an October Fed hike is very live. Chicago Fed President Austan Goolsbee, by contrast, favors waiting for more data before acting again.

    Key facts

    • Gasoline rose about 9% in September and was about 35% higher than a year earlier, per Sarah
    • Home heating oil and natural gas prices were up nearly 75% from September 2025
    • Core CPI, excluding food and energy, was about 2.6% year over year, according to Sarah
    • Share of CPI categories rising faster than 3% over six months fell to about 38%, from 56% in May
    • Bloomberg data put the odds of an Oct. 27-28 Fed rate hike at about 17%, down from roughly 33%

    Commentary

    The energy spike is the predictable part; the less obvious shift is that inflation is narrowing across the economy while the costs households cannot avoid, like electricity, rent and fuel, stay stubbornly high. That split lets the Fed argue for patience, but it also means the bills most families feel are the ones the central bank's patience will not bring down soon.

    Sources: Yahoo Finance, Kathleen Hays Presents: Central Bank Central

  4. 4

    BoJ Governor Ueda says underlying inflation close to 2% target

    Bank of Japan Governor Kazuo Ueda told parliament Monday that anchoring inflation around 2% is increasingly important, even as rising raw material costs from the Middle East conflict lift prices. He said raising rates at an appropriate pace would help prevent spikes in bond yields, and warned that failing to adjust policy could stoke concern over an inflation overshoot. Asked about fiscal spending, Ueda said higher expenditure would spur wages and prices, though boosting supply capacity could moderate inflation over the longer term.

    Key facts

    • Ueda told parliament Monday that underlying inflation is "quite close" to the 2% target.
    • Strong global AI demand and a tight labor market are adding to price pressures.
    • The Bank of Japan's policy meeting later this month will bring fresh growth and inflation forecasts.

    Commentary

    The notable shift is Ueda crediting demand from jobs and recovery, not just raw material costs, for building price pressure, which strengthens the case for tightening. If that reading holds, the coming policy meeting becomes a test of whether waiting longer lets price pressure outrun policy.

    Sources: TradingView

  5. 5

    Oil prices ease as US waives Russia sanctions amid Middle East supply risks

    Oil prices fell on Monday after US President Donald Trump signed an order waiving key sanctions and tariffs on Russia imposed under the Graham Act, a move that raised the prospect of more fuel entering the market. The waiver followed a deal with Russian President Vladimir Putin to export diesel to the US. Ukrainian President Volodymyr Zelenskiy criticised the US actions, saying they would hurt Ukraine. Brent had briefly reached $110 on Friday, its first such level since May, as Middle East tensions raised concern over shipping routes. Attacks on commercial vessels and stalled US-Iran negotiations keep prices volatile, and traders will watch Strait of Hormuz developments and upcoming inventory data.

    Key facts

    • Brent crude fell $1.56, or 1.42%, to $108.30 a barrel on Monday.
    • WTI crude was down 0.25% at $101.20 a barrel.
    • Gulf crude flows fell to about 8.5 million barrels per day last week, per Kpler, from over 20 million.
    • Kpler reported at least 10 confirmed incidents involving commercial vessels during the week.
    • Secretary of State Marco Rubio said Trump would use up to 60 days to evaluate the waiver's economic consequences.

    Commentary

    The sanctions waiver promises more Russian fuel, but it cannot easily offset a Gulf shipping squeeze of this scale. Prices will likely hinge on Hormuz and the stalled US-Iran talks rather than on Washington's decision on Russia. Ukraine, which has protested the move, bears the cost of easing pressure on Moscow.

    Sources: The Times of India, Yahoo Finance Australia

Today's video

Also posted to: