Bloomberg Daybreak: US Edition Daybreak Weekend: Fed Meeting, BOE Decision, BOJ Policy
Jun 13, 2025
In this engaging discussion, Paul Jackson, Asia Economy Editor for Bloomberg News, shares his insights on the Bank of Japan's complex monetary policy amid global trade tensions. Michael McKee, Bloomberg's International Economics correspondent, delves into the Federal Reserve's upcoming decisions and their impact on the economic outlook. They also tackle the ripple effects of evolving interest rates on housing markets, the UK’s precarious economic position, and strategic business solutions for navigating these turbulent waters.
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Fed's Rate Pause and Tariff Impact
- The Fed is expected to hold interest rates steady, likely until September to better gauge economic conditions.
- Tariffs are a wildcard that may impact inflation, making Fed's future decisions uncertain.
Housing Builders Use Incentives
- Home builders use aggressive incentives such as mortgage rate buy-downs to maintain demand amid softening sales.
- Inventory levels are high, so builders focus on reducing stock before starting new projects.
UK Inflation and Bank Rate Challenges
- UK inflation is up due to tax rises and household bills, but the economy shows mixed signs with cautious consumers and tax-related headwinds.
- Bank of England faces a dilemma between cutting rates and managing sticky inflation and labor market dynamics.