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Fed's Rate Cuts Amid UK Stagflation Concerns

9/20/2025

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Story summary
  • The Federal Reserve will discuss recent rate cuts and economic indicators, including PCE inflation and GDP estimates, in upcoming speeches, notably by Chairman Powell.
  • The Bank of England is slowing bond sales and focusing on shorter maturities, leading to rising gilt yields alongside U.S. bond yields.
  • The pound dropped 0.6% against the dollar, driven by stronger U.S. employment data.
  • UK inflation is nearly double the central bank's target, with potential rate cuts expected by March 2026.
  • The UK is experiencing stagflation, marked by high inflation, weak growth, and rising unemployment, with the Autumn Budget scheduled for November 26.