Reports
The Federal Reserve’s Potential Rate Cut: Implications for Growth
The Federal Reserve’s Potential Rate Cut: Implications for Growth
The Federal Reserve’s Potential Rate Cut: Implications for Growth
The Federal Reserve (Fed), as the central bank of the United States, holds a unique position in the global financial system. Its monetary policy decisions are not only critical for the trajectory of the U.S. economy but also carry far-reaching consequences for global markets. At the current juncture, the prospect of a rate cut by the Fed is increasingly in focus. This potential pivot signals a recognition of slowing economic activity and an effort to sustain growth, yet it also brings forth questions about inflation, asset valuations, and international capital flows.
Emerging Deflafionary Risk in the U.S
The Federal Reserve’s Potential Rate Cut: Implications for Growth
The Federal Reserve’s Potential Rate Cut: Implications for Growth
Top economist David Rosenberg warns of a possible "deflationary shock" in the United States—where prices not only grow more slowly but actually decline. Key contributors include tariff-driven dampening of consumer demand, reduced immigration (dampening spending), and demographic shifts as an aging population saves more and spends less.
Underlying Fragility Beneath U.S. Economic Strength
The Federal Reserve’s Potential Rate Cut: Implications for Growth
Underlying Fragility Beneath U.S. Economic Strength
Despite upbeat headlines—job growth, stable inflation, surging stock markets—a deeper fragility persists. Employment gains are mostly in low-productivity sectors, private hiring is weakening, and housing affordability is being squeezed by rising mortgage rates. Tech stocks buoy market indices, obscuring real weaknesses.
European Manufacturing Rebounds
De-dollarization and its Geopolitical Effects for the BRICS
Underlying Fragility Beneath U.S. Economic Strength
European manufacturing rebounded in August, with the Eurozone’s PMI rising above 50 for the first time in three years. Strong domestic demand in southern Europe, particularly Spain and Greece, offset weakness in Germany. The recovery signals resilience despite U.S. tariffs and global uncertainty, offering cautious optimism for sustained industrial growth.
De-dollarization and its Geopolitical Effects for the BRICS
De-dollarization and its Geopolitical Effects for the BRICS
De-dollarization and its Geopolitical Effects for the BRICS
This supremacy has granted the United States what former French president Valéry Giscard d’Estaing famously called an “exorbitant privilege”: the ability to borrow cheaply, finance persistent deficits, and project geopolitical influence through monetary channels.
But the global environment is shifting. The geopolitical rivalries of the 21st century — the rise of China, sanctions against Russia, tensions in the Middle East, and the increasing assertiveness of the Global South — have accelerated efforts to reduce dependency on the dollar. The BRICS bloc (Brazil, Russia, India, China, and South Africa, now expanded to include new members such as Saudi Arabia, the UAE, Egypt, and Iran) is at the heart of this movement.