Latest news with #U.S.FederalReserve
Mint
8 hours ago
- Business
- Mint
LGT Wealth's Chirag Doshi recommends India bond investors to buy 5-10 year notes amid RBI rate cut expectations
As we approach the middle of 2025, the global bond market is flashing mixed signals. While the U.S. Federal Reserve remains cautious, waiting for clearer signs before making any moves, bond yields in major markets like Japan and the UK are climbing. Japan's super-long bond yields have reached multi-decade highs, stirring concern over long-term fiscal pressure. Meanwhile, the European Central Bank is expected to cut rates again in early June, bringing its deposit rate to 2% — but may pause soon after, hinting that the easy money cycle is nearing its end. In contrast, India's fixed-income markets are offering something rare these days: Stability. Fresh GDP data released on 30 May 2025 confirms India's economic resilience. Growth for the January–March quarter came in at a strong 7.4%, lifting the full-year FY25 number to 6.5%. That keeps India firmly in the lead among the world's major economies. Inflation, too, is cooperating. Retail inflation (CPI) dropped to 3.16% in April, its lowest level in over six years, and now sits well below the Reserve Bank of India's (RBI) 4% target. With inflation under control and growth steady, markets are widely expecting the RBI to cut rates by 25 basis points in its 7 June meeting. That would take the repo rate to 5.75%, adding to the two rate cuts already delivered earlier this year. The RBI's recently released Annual Report reinforces this outlook. It notes that inflation is likely to remain under control through FY26, aided by better food supply and normal monsoons. Importantly, the central bank also transferred a record ₹ 2.69 trillion surplus to the government, thanks to higher interest earnings and forex gains — giving it even more room to manage liquidity effectively. Government bond yields have softened in response. The benchmark 10-year bond is trading around 6.25%, and yields on 5 to 7-year bonds have fallen more sharply, driven by strong demand from mutual funds and long-term investors. The rally isn't limited to sovereign paper. Corporate bond issuance in April hit a record ₹ 98,700 crore, with May showing similar momentum. Top-rated public sector issuers are now able to raise 5-year money below 7%, while spreads for high-grade NBFCs have narrowed by 20–25 basis points in just two months. Looking ahead, global index inclusion continues to be a supportive tailwind. After entering the JP Morgan index last year, India is set to join the FTSE bond index in September, which could bring in $20–40 billion of passive foreign inflows. That should help keep bond demand strong and yields anchored. With inflation under control, rate cuts likely, and bond inflows set to rise, the case for locking in medium-duration yields is strong. Bonds in the 5 to 10-year segment offer a good balance of carry and capital appreciation potential. If RBI cuts another 25–50 basis points this year, 10-year yields could ease toward 6.0% by December. Credit spreads are also starting to look attractive. While top-rated borrowers have already benefited from falling yields, quality AA and AA+ issuers may still see spreads compress further. For investors with a slightly higher risk appetite, this could be the right time to add select high-grade credits to portfolios. In a world where central banks are pulling in different directions and global bond markets are swinging on every new data point, India stands out for its macro stability and improving interest rate outlook. For fixed income investors, especially those looking at medium-term opportunities, India offers a rare combination of high real yields, strong growth, and a supportive policy backdrop. Now may be a good time to gently lean into duration and selectively capture spreads — before the rest of the world catches up. The author, Chirag Doshi, is the CIO at LGT Wealth India. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Yahoo
2 days ago
- Business
- Yahoo
6 Books Robert Kiyosaki Recommends (Besides His Own) To Make You Rich
Robert Kiyosaki, famed author and financial guru, is a respected figure in the world of financial education. Beyond his own publications, which include but are not limited to 'Rich Dad Poor Dad,' 'Cashflow Quadrant,' 'Increase Your Financial IQ' and 'Why We Want You to be Rich' (co-written with Donald Trump), he advocates for improving your financial literacy through reading. Read Next: For You: Kiyosaki often speaks of books that have inspired and influenced his financial philosophy. Here are six of his top recommendations that he believes can set you on the path to wealth and financial freedom. A timeless classic, this book uses parables to convey fundamental financial wisdom. Kiyosaki often quotes its basic principles, such as paying yourself first and living below your means. Often regarded as the ultimate success book, Napoleon Hill shares the secrets of the most successful people of his time. Its lessons on positive thinking, setting clear goals, and persistence align with Kiyosaki's beliefs on achieving financial success. Learn More: This book is about recognizing opportunities in your own backyard. Kiyosaki often refers to it when emphasizing the importance of local investments and making the best of available resources. Considered the Bible of investing, Benjamin Graham's book is a guide to the philosophy of value investing. Kiyosaki believes that understanding the fundamentals presented in this book is key to becoming a successful investor. A book about the power of thought and its role in shaping one's life, Kiyosaki often references its teachings about the impact of a person's beliefs and thoughts on their financial success. This is a deep dive into the creation of the U.S. Federal Reserve and the nature of money. Kiyosaki recommends it for those who wish to understand the financial system better and how it affects individual wealth. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? These 10 Used Cars Will Last Longer Than an Average New Vehicle This article originally appeared on 6 Books Robert Kiyosaki Recommends (Besides His Own) To Make You Rich Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Fed's Daly says inflation her main focus right now
By Ann Saphir OAKLAND, California (Reuters) -U.S. Federal Reserve policymakers could still cut interest rates twice this year as they projected in March, San Francisco Fed President Mary Daly said on Thursday, but for now rates should remain steady to make sure inflation is on track to reach the central bank's 2% goal. "As long as inflation is printing above target and there's some uncertainty about how quickly it can come back down to 2%, well, then inflation is going to be my focus because the labor market's in solid shape," Daly said in an interview with Reuters after an appearance at the Oakland Rotary Club. "We need to have policy in this modestly or moderately restrictive space, depending on how you think about it, to continue to bring ourselves to price stability." The Fed earlier this month kept short-term borrowing costs in the 4.25%-4.5% range where they've been since December. Daly said the decision was an "active" choice as the central bank evaluates the economic impact of the Trump administration trade and other policies -- like a driver holding the wheel steady rather than steering to the left or the right. Fed policymakers generally feel that Trump's aggressive tariffs risk increasing unemployment, which at 4.2% is comparatively low, and pushing up on inflation, which by the Fed's targeted measure is at 2.3%. Overall, Daly said, the economy is in solid shape for now. "I'm looking for any signs that the labor market is weakening. I haven't seen them, but let's continue to look," Daly said. "And I'm also looking for signs about inflation either continuing to gradually come down -- that would be welcome news -- or having any pressure to move either back up or stay sticky." As part of that effort she is crisscrossing the Western states for clues on how businesses and communities are faring. After her appearance in Oakland, Daly was headed to catch a plane to southern California where she was due to speak at another event on Friday. "I spend a lot of time counting cranes in cities," she said. "And when I count the cranes, there's certainly more than zero. And there's, in many cities, especially in the Intermountain region, there are more than there were last not stalled out." At the same time, she said, businesses are taking fewer risks - opening five stores, for instance, instead of 10. All that -- along with economic data showing a slowing but not cratering economy and a continued easing of inflation -- shows the Fed is not in the difficult position of having to choose between fighting inflation and bolstering the economy, and feeds into her sense that the Fed could cut rates later this year. "In that world, a couple of rate cuts, like the (Fed projections) said, would make some sense, right? But the distribution of risks around that is pretty large," Daly said. Fed policy is well-positioned to respond to those risks and the central bank is agile, she added. A U.S. trade court ruling on Wednesday that blocked many of Trump's tariffs, followed on Thursday by an appeals court reversal, underscored the uncertainty over trade policy that is keeping many businesses -- and the Fed -- on edge. Clarity might come with time, Daly said. "I don't want to make policy decisions based on speculation, either speculation that inflation will rise or speculation that it will never fall," she said. "I think the (projection) in March is a reasonable projection, but ... we're in May, right? So many things can happen."
Yahoo
3 days ago
- Business
- Yahoo
Fed's Daly says inflation her main focus right now
By Ann Saphir OAKLAND, California (Reuters) -U.S. Federal Reserve policymakers could still cut interest rates twice this year as they projected in March, San Francisco Fed President Mary Daly said on Thursday, but for now rates should remain steady to make sure inflation is on track to reach the central bank's 2% goal. "As long as inflation is printing above target and there's some uncertainty about how quickly it can come back down to 2%, well, then inflation is going to be my focus because the labor market's in solid shape," Daly said in an interview with Reuters after an appearance at the Oakland Rotary Club. "We need to have policy in this modestly or moderately restrictive space, depending on how you think about it, to continue to bring ourselves to price stability." The Fed earlier this month kept short-term borrowing costs in the 4.25%-4.5% range where they've been since December. Daly said the decision was an "active" choice as the central bank evaluates the economic impact of the Trump administration trade and other policies -- like a driver holding the wheel steady rather than steering to the left or the right. Fed policymakers generally feel that Trump's aggressive tariffs risk increasing unemployment, which at 4.2% is comparatively low, and pushing up on inflation, which by the Fed's targeted measure is at 2.3%. Overall, Daly said, the economy is in solid shape for now. "I'm looking for any signs that the labor market is weakening. I haven't seen them, but let's continue to look," Daly said. "And I'm also looking for signs about inflation either continuing to gradually come down -- that would be welcome news -- or having any pressure to move either back up or stay sticky." As part of that effort she is crisscrossing the Western states for clues on how businesses and communities are faring. After her appearance in Oakland, Daly was headed to catch a plane to southern California where she was due to speak at another event on Friday. "I spend a lot of time counting cranes in cities," she said. "And when I count the cranes, there's certainly more than zero. And there's, in many cities, especially in the Intermountain region, there are more than there were last not stalled out." At the same time, she said, businesses are taking fewer risks - opening five stores, for instance, instead of 10. All that -- along with economic data showing a slowing but not cratering economy and a continued easing of inflation -- shows the Fed is not in the difficult position of having to choose between fighting inflation and bolstering the economy, and feeds into her sense that the Fed could cut rates later this year. "In that world, a couple of rate cuts, like the (Fed projections) said, would make some sense, right? But the distribution of risks around that is pretty large," Daly said. Fed policy is well-positioned to respond to those risks and the central bank is agile, she added. A U.S. trade court ruling on Wednesday that blocked many of Trump's tariffs, followed on Thursday by an appeals court reversal, underscored the uncertainty over trade policy that is keeping many businesses -- and the Fed -- on edge. Clarity might come with time, Daly said. "I don't want to make policy decisions based on speculation, either speculation that inflation will rise or speculation that it will never fall," she said. "I think the (projection) in March is a reasonable projection, but ... we're in May, right? So many things can happen." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Recorder
4 days ago
- Business
- Business Recorder
Gold hits over one-week low as US tariff ruling dents safe-haven appeal
Gold prices slipped on Thursday to their lowest levels in more than a week after a US federal court blocked President Donald Trump's 'reciprocal tariffs', dampening the metal's safe-haven allure, while a robust dollar put further pressure on bullion. Spot gold was down 0.6% at $3,271.17 an ounce, as of 0618 GMT, after hitting its lowest since May 20. U.S. gold futures dropped 0.8% to $3,268.20. A US trade court on Wednesday halted the enforcement of Trump's tariffs, ruling the president exceeded his authority by imposing universal duties on imports from nations with a trade surplus with the United States. Gold prices recover sharply The U.S. court's decision is the key news driver leading to a rally in the dollar, which subsequently pushed gold prices lower, said Nicholas Frappell, global head of institutional markets at ABC Refinery. On April 2, Trump had levied 'reciprocal tariffs' on multiple countries, stoking fears of a global recession. However, many of those country-specific tariffs were paused a week later. Following the trade court's ruling, the U.S. dollar index rallied, making greenback-priced gold more expensive, with Wall Street futures and Asian equities also climbing. Meanwhile, the Trump administration filed a notice of appeal, challenging the court's authority and signalling a potential escalation to the Supreme Court if necessary. But the gold market is still bullish as 'longer-term outlook suggests a weaker dollar and there's still likely to be some inflationary pressures near term,' Frappell said. The minutes from the U.S. Federal Reserve's May 6-7 session showed that officials are concerned about the potential for concurrent rises in inflation and unemployment, a scenario that would necessitate a choice between implementing tighter monetary policy to combat inflation or lowering interest rates to support economic growth and employment. The market now awaits U.S. GDP data due later in the day, with core U.S. Personal Consumption Expenditures data for further cues on rate outlook. Elsewhere, spot silver rose 0.7% to $33.21 an ounce, platinum was down 0.2% at $1,073.15 and palladium edged 0.9% higher to $971.57.
