Global markets show mixed results after release of Fed’s meeting minutes
Date
1/12/2025 2:31:24 AM
(MENAFN) Global markets showed mixed results on Wednesday, following the release of the Federal Reserve's meeting minutes, which highlighted increased risks to the US inflation outlook. This came ahead of President-elect Donald Trump's anticipated actions to declare a national economic emergency, which could provide legal grounds for additional tariffs. Analysts speculate that Trump may use the International Economic Emergency Powers Act (IEEPA) to unilaterally manage imports and create a new tariff program, though the decision is still pending as his team explores other legal options.
The potential for new tariffs under Trump’s leadership has raised concerns about a global trade war, which could drive inflationary pressures. Analysts caution that such measures might escalate economic risks, particularly as Trump’s policies on trade and immigration are still evolving. Although the Fed's minutes did not specifically reference Trump, they noted that inflation is expected to gradually move toward the 2 percent target, though the path to achieving this could take longer than initially anticipated due to trade and immigration policy changes.
In the labor market, US private sector employment rose by 122,000 people in December 2024, falling short of market expectations. However, initial claims for unemployment insurance dropped to 201,000 for the week ending January 4, reaching an 11-month low and exceeding market forecasts. These figures suggest a mixed but relatively stable labor market environment.
On the financial markets, the US 10-Year Futures bond remained steady at 4.67 percent on Thursday, after peaking at 4.73 percent on Wednesday, the highest level since October 2023. The US Dollar Index rose by 0.5 percent on Wednesday to close at 109.1, maintaining a flat course on Thursday. Meanwhile, Brent crude oil traded at USD75.8 per barrel, experiencing a slight decline of 0.3 percent due to ongoing uncertainties surrounding trade and economic policies that may be introduced when Trump takes office on January 20.
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