Our Scans · (FS.1.02) Central Banking · Weekly Summary

• [New] While the U.S. Federal Reserve and the Bank of England are expected to cut rates (BoE by 25 bps to 3.75%), the European Central Bank is likely to maintain its deposit rate at 2.0% due to persistent service sector inflation. FinancialContent
• [New] The ... organization expects the US Federal Reserve to cut interest rates just twice more by the end of 2026, before keeping the federal funds rate at 3.25% to 3.5% throughout 2027. McAlvany Financial Group
• [New] Federal Reserve rate cuts aimed at normalizing policy, rather than staving off recession, would likely support further gains for stocks in 2026. The Plan Advocate
• [New] Globally, other central banks will be watching closely, and a U.S. rate cut could influence their own monetary policy decisions, potentially leading to a more synchronized easing cycle worldwide or, conversely, creating currency fluctuations if policies diverge significantly. Valley City Times-Record
• [New] Interest rate futures trading shows almost a 90% conviction that the Fed will ease monetary policy by a quarter-percentage point. CNBC
• [New] The primary catalyst remains growing conviction that the Federal Reserve will cut rates in December, lifting non-yielding assets and weakening the opportunity cost of holding gold. investing.com
• [New] Federal Reserve Policy A robust inflation reading (especially core PCE) combined with healthy consumer spending would reduce pressure on the Fed to cut rates and might even raise the likelihood of keeping rates higher for longer. FinancialJuice
• [New] US Dollar A stronger reading could boost the U.S. dollar: higher PMI implies better growth prospects and a lower chance of near-term monetary easing by the Federal Reserve. FinancialJuice
• [New] Government stimulus and supply chain disrupting lockdowns sparked massive global inflation, which some fear has put the U.S. dollar into death spiral as the Federal Reserve is forced to create more dollars to pay off interest on its existing debt. Forbes
• [New] Tether is in the early stages of a massive interest-rate trade, betting that Fed cuts will hurt Treasury income but send Bitcoin and gold higher. Crypto Briefing
• [New] Deutsche Bank's research team is standing by its projection that the U.S. Federal Reserve will initiate its easing cycle with a 25 basis point interest rate cut in December 2025. Roic AI
• [New] Bank of England governor Andrew Bailey has previously raised fears about a potential financial crash, warning after the collapse of two US companies that alarm bells were ringing. BBC News
• [New] Federal Reserve Policy A robust print would reduce pressure on the Fed to cut rates and could support a narrative of holding rates steady for longer (or even a tightening bias if inflation picks up). FinancialJuice
• [New] US Dollar A stronger-than-expected reading tends to support the U.S. dollar, as it reinforces the view of resilient growth and less need for early monetary easing by the Federal Reserve. FinancialJuice
• [New] US Dollar A better-than-expected number would tend to support the US dollar: stronger spending suggests healthier economic momentum, which could reduce expectations for near-term monetary easing by the Federal Reserve. FinancialJuice
• [New] US Dollar A stronger-than-expected PPI tends to support the U.S. dollar, as it signals firmer inflation and reduces the likelihood of immediate policy easing by the Federal Reserve. FinancialJuice
• [New] For investors, the interplay between geopolitics, monetary policy, and global growth will determine risk premiums across asset classes. The Plan Advocate
• [New] Key factors to watch in 2026 include trade policy direction, fiscal sustainability, central bank reserve diversification, and the dollar's role in global liquidity. The Plan Advocate
• [New] As global markets navigate a landscape marked by dovish Federal Reserve signals and mixed economic indicators, investors are keenly observing the potential for interest rate adjustments and their implications on various sectors. Yahoo Finance
• Where unfairness is established, consumers will receive compensatory interest at the Bank of England base rate + 1%. KPMG
• Interest Rate Divergence: The ECB is expected to continue cutting rates, whereas the Fed remains on hold, for now. Fusion Markets | Low Cost Forex Broker
• Diverging Monetary Policies: Whilst the Federal Reserve remains cautious about rate cuts, the European Central Bank and Bank of Japan (BOJ) are expected to ease policy further. / USA Fusion Markets | Low Cost Forex Broker

Last updated: 11 December 2025