Fed’s inflation concerns not affecting markets | Wilnesh News

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Fed cautious on inflation, Trump policies
At the December meeting, the U.S. Fed officials have expressed concern that inflation will remain stubbornly above the central bank’s 2% target and the possible impact of U.S. President-elect Donald Trump’s policies. Therefore, officials will Minutes of the meeting released on Wednesday showed a more gradual rate cut.

U.S. stocks shake off inflation worries
Although U.S. stocks rose slightly on Wednesday 10-Year Treasury Bond Yield After the release of the minutes of the Federal Reserve meeting, it hit the highest level since April. Asia-Pacific markets were mostly lower on Thursday. Australian S&P/ASX 200 Index Data showed the country closed down 0.24% retail sales November’s gain was less than expected.

Asian central banks face strong dollar
Asian currencies such as the Chinese yuan, Japanese yen and South Korean won have fallen against the dollar since Trump won the presidential election in November. That poses a conundrum for Asian central banks: A weaker currency would boost exports but could increase imported inflation, complicating banks’ ability to guide domestic economic policy.

Concerns about deflation in China
China’s consumer prices rose 0.1% in December compared with the same period last year data Data released by the National Bureau of Statistics on Thursday showed. On a monthly basis, China’s CPI remained flat, falling 0.6% in November. China’s continued decline in consumer inflation shows that China is facing the dilemma of weak domestic demand, raising concerns about deflation.

Microsoft lays off employees based on performance
Microsoft The company confirmed to CNBC on Wednesday that it would lay off a small number of employees in various divisions based on performance. business insider First reported on the company’s plans. A person familiar with the matter who asked not to be named said the layoffs will affect less than 1% of employees.

(PRO) Bernstein said, please pay attention to this Taiwanese chip supplier
At the International Consumer Electronics Show, NVIDIA Announced a desktop supercomputer aimed at artificial intelligence researchers and data scientists. The computer will use Nvidia’s Grace Blackwell Superchip, which Nvidia will produce in partnership with a Taiwanese chip supplier. Bernstein said that starting in 2026, suppliers will gain huge economic benefits from this cooperation.

On paper, the minutes from the Fed’s December meeting are bad news for investors. Officials worry about inflation and the impact of Trump’s stated policies (although Trump doesn’t explicitly name them).

“Nearly all participants agreed that upside risks to the inflation outlook have increased,” the minutes said. “Participants cited recent stronger-than-expected inflation data and the possible impact of potential changes in trade and immigration policy.”

As a result, Fed officials expect the pace of interest rate cuts to slow down in the future.

Upward inflation risks, problems with economic policy, and lower-than-expected interest rate cuts: this is a potent and bitter drink for investors. In intraday trading, the 10-year Treasury yield hit 4.730%, the highest level since April.

However, stocks mostly ignored the warning on Wednesday and continued to rise. this S&P 500 Index 0.16% was added, and Dow Jones Industrial Average up 0.25%. this Nasdaq Index Down 0.06% – Technology stocks such as Palantir, AMD and micro strategy Had a rough day – but still closer to flatline rather than a steep decline.