Latest Finance-Economy News
Fed governor signals up to 150 bps of U.S. rate cuts in 2026
A U.S. Federal Reserve governor has indicated that as much as **150 basis points of rate cuts** could be implemented this year, signaling a notable shift toward monetary easing. This stance aligns with broader expectations of looser financial conditions to support growth amid moderating inflation and a softening labor market.
UN: Global growth to slow to 2.7% with risks from trade and fiscal strains
The UNâs *World Economic Situation and Prospects 2026* projects **global growth of 2.7%**, down from an estimated 2.8% in 2025 and well below the preâpandemic 3.2% average. The report warns that higher U.S. tariffs, tight fiscal space, and weak investment are restraining recovery, especially in developing economies struggling to meet development goals.
Easing inflation worldwide, but costâofâliving pressures persist
Global headline inflation is expected to decline from 4.0% in 2024 to 3.4% in 2025 and further to **3.1% in 2026**, according to the UN. Despite this disinflation, elevated prices for food, energy, and housing continue to erode real incomes, particularly for lowâincome households.
Allianz GI: Global economy âbending but not breakingâ in early 2026
Allianz Global Investorsâ Q1 2026 house view describes the global economy as **resilient but slowing**, with growth near trend supported by easier fiscal and monetary policy and healthy private balance sheets. Inflation is characterized as sticky in the U.S. but trending lower elsewhere, while political and policy uncertainty remains elevated around the coming Fed chair transition and U.S. midterms.
UN highlights uneven regional outlook with India and East Asia as key growth drivers
The UN expects U.S. growth at **2.0%** and European Union growth at **1.3%** in 2026, as higher tariffs and geopolitical uncertainty weigh on EU exports. East Asia is forecast to grow 4.4% led by Chinaâs 4.6% expansion, while South Asia is set for 5.6% growth, driven by Indiaâs 6.6% performance and strong public investment.
Developing economies face debt, investment, and inequality challenges
The UN warns many developing countries continue to struggle with **high debt burdens, weak investment, and climateârelated shocks**, threatening progress toward the Sustainable Development Goals. Although financial conditions have eased with monetary loosening, benefits are unevenly distributed and structural inequalities risk being widened by uneven gains from AIâdriven investment.
CME hikes margin requirements on precious metals amid volatility
CME Group has increased interâcommodity spread and related spread margin requirements for **gold, silver, platinum, and palladium futures**. The move reflects heightened risk management amid shifting interestârate expectations and geopolitical factors affecting commodity markets.
U.S. labor market shows resilience with lowerâthanâexpected jobless claims
Initial U.S. jobless claims for the week ending 3 January came in at **208,000**, below expectations of 210,000 and slightly above the prior 200,000 reading after revision. The data suggest a stillâresilient labor market even as broader economic outlooks point to slowing growth and prospective Fed easing.
Global outlooks flag tariff risks and potential market volatility
Analysts highlight that **higher U.S. tariffs** are an emerging drag on global trade and EU growth, adding uncertainty for investors. Market commentary notes that elevated asset valuations, especially in AIâlinked sectors, and possible further trade escalation could increase volatility despite easier monetary policy.
Rio Tinto and Glencore revive talks to create mining giant
Global miners **Glencore and Rio Tinto** have reportedly restarted merger discussions that could form one of the worldâs largest diversified mining companies. A deal would have significant implications for global supply of key industrial and energyâtransition metals, with potential effects on prices and investment in the sector.