Latest news with #policymakers
Washington Post
4 hours ago
- Business
- Washington Post
A divided Fed will keep rates steady, but might signal future cuts
When Federal Reserve policymakers wrap up their latest two-day meeting on Wednesday, they are all but certain to leave interest rates unchanged for a fifth-straight time — a reflection of their cautious approach as they wait for clearer signals from the economy. So far, economic growth remains decent, and inflation has shown recent moderation — a combination that gives the Fed room to cut rates but not the urgency to act this month.
South China Morning Post
5 hours ago
- Business
- South China Morning Post
China unveils new oversight guidelines seen as a strategic ‘anti-involution effort'
China's top economic planner has unveiled new draft guidelines aimed at tightening oversight of government-backed investment funds, urging a sharper focus on advanced manufacturing and strategic emerging industries. The warning against overlapping investments marks the latest push to rein in redundant spending that has intensified cutthroat competition and added to deflationary pressure – a key concern for policymakers seeking to steer capital toward high-impact, innovation-driven sectors. On Wednesday, the National Development and Reform Commission (NDRC) released two draft documents for public comment, laying out guidance on how government funds should be deployed and evaluated. The new rules call for stronger top-down planning, better coordination between central and local funds, and a sharper focus on key industries such as advanced manufacturing, future tech and the digital economy. 'The government will enhance the planning and guidance of government investment fund allocation, highlight policy orientation and the guiding role of the state, avoid homogeneous competition and the crowding out of private capital,' according to one of the draft guidelines. It will also promote the formation of a development pattern that is moderate in scale, rationally distributed, standardised in operation, efficient in execution, and risk-controlled, the document said. The guidelines also emphasise the role of public capital as 'patient, long-term funding' to stabilise investments across economic cycles.
CNET
7 hours ago
- Business
- CNET
4 Money Moves You Must Make Today
Make the most of the Fed's upcoming decision by doing these things ASAP. Deagreez/Getty Images Today's Federal Reserve meeting may not be on your radar, especially with the headlines full of economic turmoil. But the Fed's actions have real consequences for your money, and knowing how to prepare can help you reap the rewards -- and minimize your losses. Since the central bank is expected to hold interest rates steady at its July 29-30 meeting, savings (and borrowing) rates should stay high for the time being. But policymakers may start cutting rates as early as September. The sooner you make these key moves with your money, the better the position you could put yourself in financially. Read more: The Clock's Ticking for Your Sweet Savings Rate. Here's What Could Happen if the Fed Cuts Rates This Fall Make these 4 money moves now Make the most of the Fed's upcoming decision by doing these things ASAP. 🤑 Lock in a high APY with a certificate of deposit CDs are unique deposit accounts that come in terms ranging from a few months to several years. You need to leave your money in the CD for the entire term to avoid early withdrawal penalties. In exchange, the bank or credit union pays you a fixed return based on the interest rate in effect when you open the CD. Some of the best CDs today offer annual percentage yields of up to 4.5%. Because the Fed is expected to cut rates in the fall, locking in a higher APY now can protect your future earnings if rates drop. Though banks tend to follow the Fed's lead when setting CD rates, APYs have already started falling and will likely drop more in the fall. "Knowing the Fed would like to get two interest rate cuts in before the end of the year, I would anticipate both CDs and savings accounts to begin offering less interest in the near term," said Dana Menard, CFP and lead financial planner at Twin Cities Wealth Strategies. "If you do not need to access the funds, I would lock in the higher rates being offered today." 💰 Take advantage of elevated savings rates while you still can A CD is a great home for money you don't plan to spend right away. But what about your emergency savings? You'll want to keep those savings liquid while still earning the most interest you can on them. High-yield savings accounts, often provided by online banks, offer far better returns than traditional savings options available at major banks. The best savings accounts pay at least 10 times the national average savings rate. Although there may be withdrawal limits, you can continue adding money to your high-yield savings account and keep your funds accessible when you need them. The interest rates on high-yield savings accounts are variable, which means they tend to fall when the central bank makes interest rate reductions. "We've already seen some of the top offers come and go," said Taylor Kovar, certified financial planner and CEO of 11 Financial. "Most banks probably won't raise rates unless the Fed gives them a reason to. So what we're seeing now is probably as good as it's going to get for a while." 🛑 Press pause on big purchases If you're thinking about financing a new car or other large purchase, consider waiting until the Fed begins cutting rates again to avoid high interest charges. If you're in the market for a new home, you should know that borrowing rates for home loans are expected to stay high. Mortgage rates are only indirectly related to the Fed's monetary policy, and experts don't expect this year's interest rate adjustments to bring them down significantly. 💳 Prioritize paying down debt Paying down your credit cards and other high-interest debt is a good move in any rate environment but especially while interest rates remain high. High-interest debt can hamper your financial stability. When you owe a large amount of interest on credit or loans, that money is no longer free for savings, investments or daily expenses. You may want to consider a debt consolidation loan to combine your outstanding debt at a lower interest rate. Search for a reputable lender you're interested in working with so you can apply when interest rates get cut later this year. It's time to get strategic with your money You can't control what the Fed does with interest rates, but you can take some smart financial steps to make the most of its decisions.
Reuters
7 hours ago
- Business
- Reuters
Euro zone wage growth slowing as expected, ECB data shows
FRANKFURT, July 30 (Reuters) - Euro zone wage growth will slow sharply this year, as predicted by economists, the European Central Bank's wage-tracker showed on Wednesday, supporting the bank's argument that excessive inflation has now been defeated. The ECB's wage tracker, which covers active collective bargaining agreements, indicates that negotiated wage growth, with smoothed one-off payments, was 4.6% in 2024 and would slow to 3.2% in 2025. For the first quarter of 2026, the headline ECB wage tracker stands at 1.7%, down from 1.8% in the fourth quarter of 2025, the ECB added. The figures are broadly in line with previous numbers in the tracker and suggest that wage growth is no longer a concerning issue for policymakers.
Yahoo
a day ago
- Automotive
- Yahoo
Dutch-based carmaker Stellantis reports loss in first half of year
Dutch-based multinational carmaker Stellantis NV posted a loss for the first half of the year compared to the same period of the previous year. Stellantis reported that its net loss attributable to owners of the parent for the first half of 2025 was €2.24 billion ($2.6 billion), or €0.78 per share, compared to net income of €5.624 billion, or €1.86 per share, in the prior year. The latest period results included €3.3 billion of net charges excluded from Adjusted operating income, down compared to the first half of 2024 net profit of €5.6 billion. Adjusted earnings per share for the period were €0.18 compared to €2.36 in the previous year. Net revenues for the first half of 2025 were €74.3 billion, down 13% from last year. This decline was primarily hurt by North America and Enlarged Europe regions, partially offset by growth in South America. Results also reflect the impacts of foreign exchange headwinds, tariffs, and declines in European light commercial vehicle (LCV) industry volumes. Stellantis updated its estimate of 2025 net tariff impact to approximately €1.5 billion, of which €0.3 billion was incurred in the first half of 2025. The company remains highly engaged with relevant policymakers, while continuing long-term scenario planning, it said. Stellantis has initiated financial guidance for the second half of 2025. The company expects to see increased net revenues, low-single digit adjusted operating income profitability, and improved Industrial free cash flows results in the second half of 2025.
