Latest Finance-Economy News
Federal Reserve Expected to Cut Interest Rates Again
As of December 2025, the US Federal Reserve is widely expected to deliver its third consecutive 25 basis point rate cut, lowering rates to 3.50-3.75%. This move follows signs of labor market cooling and sticky inflation above the 2% target, despite some division among officials. The upcoming December FOMC meeting is pivotal in signaling 2026 monetary policy direction.
US Inflation Remains Steady Above Fed Target
The Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, rose 0.3% in September and 2.8% year-over-year, steady within a tight range above the 2% target. Core PCE inflation also increased modestly, indicating persistent inflationary pressures despite rate cuts.
Global Services Sector Expansion Supports Economy
The ISM Services Index rose to 52.6% in November, marking the sixth consecutive month of expansion and the highest level since February. This growth is a key driver amid other sectors, like manufacturing, showing contraction with the ISM Manufacturing Index at 48.2%, signaling uneven sectoral performance.
Copper Prices Hit Record High on Supply Tightness
Copper prices surged to a record $11,645 per ton, driven by strong demand from electric vehicles, renewable energy, and data centers, coupled with supply disruptions in key mining countries. Prices rose nearly 6% in a week and 30% year-to-date, reflecting supply-demand imbalances and tariff-related market shifts.
Global Markets Trade Cautiously Ahead of Central Bank Decisions
Asian, European, and US markets opened the week with subdued activity and cautious trading as investors awaited key central bank announcements, particularly from the Fed and European Central Bank. Mixed regional performances highlight structural economic differences and persistent inflation concerns.
China's Trade Surplus Surpasses $1 Trillion Despite Tariffs
China recorded its first-ever $1 trillion annual trade surplus by expanding exports to non-US markets, demonstrating resilience against ongoing US tariff policies. This shift reflects China's ability to diversify trade and maintain manufacturing growth amid geopolitical tensions.
US to Unveil $12 Billion Farm Aid Package Amid Trade War Impacts
The Trump administration announced a $12 billion aid package targeted at farmers impacted by low crop prices and tariff-related challenges. This is part of efforts to support a key political constituency facing economic stress from ongoing trade tensions.
Concerns Grow Over China's Prolonged Property Crisis
Years into a deep property crisis, China faces mounting economic risks as falling home prices reduce household wealth and undermine consumption growth, hampering the government's plans to boost domestic demand.
Corporate Bankruptcies Rise Outside AI Sector
Economic data highlights a surge in corporate bankruptcies, particularly outside the booming AI trade sector, suggesting uneven recovery and heightened financial stress for traditional industries amid global economic challenges.
Key Companies Reporting Earnings on December 9, 2025
Several major companies including AutoZone, Core & Main, and Campbell's are scheduled to release earnings. Analysts expect mixed results reflecting industry challenges and growth prospects, with varied price-to-earnings ratios signaling differing investor expectations for 2026.