The Fed kept the funds rate at 3.50–3.75% on June 17 in Warsh’s first FOMC meeting as chair, but a hawkish dot plot rattled markets and pushed the S&P 500 down 1.2%.
Tag: inflation
Posted inEconomy
UK economy slips 0.1% in April as Iran war hits services and energy output
UK monthly GDP fell 0.1% in April, the first contraction since August 2025, as energy output dropped and businesses cited the Middle East conflict as a drag on turnover.
Posted inEconomy
Bank of Japan lifts rates to 1%, highest since the mid-1990s
The Bank of Japan raised its benchmark rate to 1% in a 7-1 vote on Monday, the highest since September 1995, as Iran war energy costs push Japan’s inflation above target.
Posted inEconomy
The Iran deal’s oil shock reversal tests central banks on both sides of the Pacific
With the US-Iran ceasefire removing the energy shock that has driven global inflation since February, the Bank of Japan and the US Federal Reserve face their pivotal June decisions in a changed landscape.
Posted inMarkets
Gold falls to a four-month low as Iran deal progress drains the war premium
Spot gold slid to around $4,072 this week, extending an 11% one-month decline, as Iran deal progress deflated safe-haven demand while oil-driven inflation kept the Fed hawkish.
Posted inEconomy
UK May retail sales post sharpest annual rise in 13 months despite travel slump
UK retail sales grew 3.7% year-on-year in May 2026, the fastest rate since April 2025, as heatwave spending on outdoor goods masked a 12.9% drop in airline bookings.
Posted inEconomy
Markets price a Fed hike for the first time as Warsh chairs his June 17 FOMC debut
For the first time in two years markets are pricing a Fed rate hike as Kevin Warsh chairs his first FOMC meeting on June 16–17, with US inflation at 4.2% and no cut bets remaining for all of 2026.
Posted inEconomy
US inflation hits 4.2% in May as energy prices surge 23% year-on-year
Energy costs drove US headline inflation to 4.2% in May—the fastest pace since April 2023—raising the stakes for the Federal Reserve’s June 17 decision on interest rates.
Posted inEconomy
Five central banks in eight days as Iran-driven inflation tests policy limits
Five major central banks — ECB, Fed, BoJ, BoE, and Bank of Canada — convene in eight days this week, with the ECB’s expected hike to 2.25% leading the sequence.
Posted inEconomy
OECD cuts global growth forecast to 2.8% as Iran war energy shock deepens
The OECD’s June 2026 Economic Outlook cut its world GDP growth forecast to 2.8% and warned that a prolonged Strait of Hormuz blockage could reduce output to 2.1% while pushing global inflation above 4%.