ECB Governing Council member Joachim Nagel expressed support for the bank’s current strategy and noted readiness to raise rates if necessary. He emphasized that persistent inflation and ongoing geopolitical tensions require a cautious approach.
Representatives of the Federal Reserve note a high level of consensus on current policy and stability in the U.S. labor market. Long-term inflation expectations remain steady, and productivity growth could accelerate thanks to advances in artificial intelligence.
Wall Street traders have ramped up deals linked to a possible Fed rate hike after hawkish signals from central bank officials. The likelihood of a rate increase this year has risen to 11%, despite ongoing discussions about a potential rate cut.
Experts believe that the Federal Reserve may keep current interest rates unchanged until the end of the year, with a particular focus on inflation. The economy is showing resilience and no downturn is expected.
The yield on U.S. Treasury bonds rose after the release of data showing a significant increase in job creation. This development has dampened expectations for an imminent interest rate cut by the Federal Reserve.
Traders are actively pricing in three ECB rate hikes this year amid inflation concerns. The probability of the first increase as early as next month is now estimated at 75%.
The US economy is showing signs of improvement and stability in the labor market, despite persistently high inflation. The Federal Reserve is maintaining a neutral policy stance and is open to a prolonged pause in changing interest rates.
Brazil's Deputy Finance Minister Dario Durigan emphasized the need to coordinate fiscal and monetary policies amid high interest rates and rising public debt. He expressed confidence that the country's revenues would recover by 2026 and highlighted the importance of finding a balance between social spending and fiscal discipline.