2025-11-13 19:45
Fed policy should still target high inflation, Hammack says Cleveland Fed chief says monetary policy barely restraining economy Hammack shrugs off worries about weaker dollar NEW YORK, Nov 13 (Reuters) - Cleveland Federal Reserve President Beth Hammack said on Thursday monetary policy needs to remain in a position where it can help lower inflation pressures, suggesting she leans against the U.S. central bank cutting interest rates again in the near future. "This is a difficult time for monetary policy," given challenges to the Fed's inflation and job mandates, Hammack said in an appearance before the Pittsburgh Economic Club. "But when I look at both of those things, on balance, I think we need to remain somewhat restrictive to continue putting pressure to bring inflation down towards our target." Sign up here. "It seems to me likely that to maintain a restrictive stance of policy, we need to keep rates around these levels," Hammack said, adding "when I look at the overall performance of the economy, it's not obvious that monetary policy should be doing more right now." Hammack and other Fed officials are weighing whether a rate cut is needed at the central bank's December 9-10 meeting. The Fed trimmed its benchmark overnight interest rate by a quarter of a percentage point to the 3.75%-4.00% range at the end of October as officials sought to buoy a softening job market while still keeping rates in a place where they can lower still-high inflation. She noted recently that she opposed the last rate cut due to ongoing inflation concerns, and a number of other Fed officials have also signaled concern about pressing forward with a reduction in borrowing costs next month, citing still-strong price pressures and the impact of the Trump administration's import tariffs. After last month's rate cut, Fed Chair Jerome Powell cautioned another easing next month was not a certainty. TARIFFS AMONG FACTORS AFFECTING INFLATION Hammack said on Thursday the economy was on balance doing well amid a balanced job market that's shown some nascent signs of weakness. She noted that while she wants monetary policy to remain in a place where it can help bring inflation back to the 2% target, she is watching hiring data and will change her monetary policy views if needed. "If I see more material weakening on the employment side, that would shift my viewpoint," Hammack said. "But right now, I see persistence in inflation. We've been above our target for four and a half years" and "my forecast would have us staying above target for another two to three years." Hammack also noted that tariffs were raising price pressures and that she expects more of those higher costs will be passed on to U.S. consumers over time. But she said data also suggests that strong price pressures are being driven by more factors than just tariffs, as evidenced by service-sector price data. She also downplayed the drop in the U.S. dollar this year. "It's important to remember that we started from a place of extreme dollar strength, and so the weakening that we've seen this year has largely brought us more in line with a lot of theoretical fair valuations of the currency relative to other currencies," she said. https://www.reuters.com/business/feds-hammack-restrictive-monetary-policy-needed-cool-inflation-2025-11-13/
2025-11-13 19:25
Nov 13 (Reuters) - The U.S. Department of Agriculture (USDA) on Thursday announced the opening of a sterile fly dispersal facility in Tampico, Mexico, in the fight against New World screwworm (NWS). "The Tampico facility will allow USDA to disperse sterile flies aerially across northeastern Mexico, including in Nuevo Leon," the USDA said in a statement. Sign up here. https://www.reuters.com/business/environment/usda-opens-sterile-fly-facility-mexico-combat-screwworm-2025-11-13/
2025-11-13 19:07
Nov 13 (Reuters) - Grayscale reported a 20% drop in revenue in the first nine months of 2025, the crypto-focused asset manager disclosed in its U.S. initial public offering paperwork on Thursday, as analysts expect the IPO market to restart. With America's longest-ever government shutdown ending, the IPO market is expected to regain momentum after the Securities and Exchange Commission operated with skeletal staffing during the shutdown. Sign up here. Stamford, Connecticut-based Grayscale reported a net income of $203.3 million on revenue of $318.7 million for the nine months ended September 30, compared with net income of $223.7 million on revenue of $397.9 million a year earlier. "2026 midterm elections are on the horizon, which could potentially change the landscape for crypto. I expect many crypto companies like Grayscale and BitGo want to go public ahead of that uncertainty," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs. Several high-profile crypto firms, including stablecoin giant Circle (CRCL.N) , opens new tab and Winklevoss twins' crypto exchange Gemini (GEMI.O) , opens new tab, have gone public this year, supported by a crypto-friendly Trump administration. "With Thanksgiving coming up in two weeks, realistically, we don’t see IPOs starting back up until early December, with some of the activity coming in early January," said Edward Best, co-head of capital markets group at Willkie Farr & Gallagher. "You also have most companies having to file an amendment with 3Q2025 financials, which may either delay their filings or slow down the SEC review a bit." Founded in 2013, Grayscale manages about $35 billion in assets and is a prominent player in the crypto landscape. Grayscale's landmark court victory against the SEC in 2023 helped pave the way for approval of spot bitcoin ETFs last year. Morgan Stanley, BofA Securities, Jefferies and Cantor are the lead-managing bookrunners. Grayscale will list on the NYSE under the symbol "GRAY." https://www.reuters.com/business/crypto-focused-grayscale-makes-us-ipo-filing-public-2025-11-13/
2025-11-13 18:58
BRASILIA, Nov 13 (Reuters) - Brazil's Finance Ministry on Thursday trimmed its 2025 economic growth forecast to 2.2% from 2.3%, citing weaker than previously expected third-quarter results that also weighed on its outlook for the final three months of the year. Latin America's largest economy has been slowing after an aggressive monetary tightening cycle carried out by the central bank in a bid to bring inflation back to its 3% target, plus or minus 1.5 percentage points. Sign up here. Policymakers at the bank halted in July a rate-hiking cycle that had lifted borrowing costs by a total 450 basis points since September 2024, bringing the benchmark Selic interest rate to 15%, a near two-decade high. "This slowdown was already expected, reflecting the lagged and cumulative effects of the restrictive monetary policy currently in place," the ministry's economic policy secretariat said in a report. The ministry cut its 2025 inflation projection to 4.6% from 4.8%, still above the official goal, citing a stronger Brazilian real, lower wholesale agricultural and industrial inflation, and global oversupply of goods amid trade disputes. In the 12 months through October, Brazil's benchmark IPCA consumer price index rose 4.68%, according to government statistics agency IBGE. "We are ending 2025 with results very similar to what we expected at the beginning of the year," Economic Policy Secretary Guilherme Mello told a press conference. The government kept its GDP growth forecast for next year unchanged at 2.4%, saying that expansion in industry and services should more than offset a slowdown in agricultural activity. It cut its 2026 inflation estimate to 3.5% from 3.6%. Mello said he expects the central bank to start an easing cycle next year, which should help support economic growth. https://www.reuters.com/world/americas/brazil-cuts-forecasts-2025-economic-growth-inflation-2025-11-13/
2025-11-13 18:29
Schumer, other Democratic senators criticize Trump for delaying export curbs on China Rule delay risks advancing China's tech agenda, Democrats argue Suspension undermines U.S. national security, reopens loopholes, they say WASHINGTON, Nov 13 (Reuters) - Top Senate Democrats including Senate Minority Leader Chuck Schumer took aim at the Trump administration for suspending a measure that blocked thousands of Chinese companies from accessing U.S. technology in the last round of trade talks with Beijing, calling it a "giveaway of key national security tools." The rule, unveiled on September 29, sought to stop sanctioned Chinese companies from using a network of subsidiaries to obtain key American equipment they were otherwise barred from receiving. Sign up here. But President Donald Trump last month agreed to delay by a year that rule as part of a deal with Chinese Leader Xi Jinping in exchange for Beijing suspending for the same period its restrictions on rare earth mineral exports, key ingredients for tech that are primarily controlled by China. In a letter dated Wednesday and first reported by Reuters, the senators, including Ron Wyden, called on Trump to reimpose the rule, arguing its delay puts "American-developed advanced computing technologies at risk of advancing China’s agenda instead of our own." "The suspension of these controls undermines U.S. national security and will make it far more difficult to stem the illicit diversion of American-made semiconductors and other advanced technology to Chinese state-affiliated entities," they wrote. "We urge you to reinstate these controls and end your giveaway of key national security tools." The White House defended itself on Thursday, arguing that the "Trump administration has implemented a rigorous export control regime to safeguard our economic and national security," according to a statement to Reuters from White House spokesman Kush Desai. The letter is the latest blowback against the Trump administration over its suspension of the rule, which was hailed by China hawks from both parties. It barred firms at least 50% owned by previously sanctioned companies from receiving U.S. tech exports, hitting roughly 20,000 additional Chinese firms with U.S. export restrictions, according to a recent report from WireScreen. The one-year suspension, the Democrats argued in their letter, reopens a "loophole" and provides "a year-long opportunity for affiliates of blacklisted foreign firms to restructure in order to evade the rule." The delay, they added, is part of a troubling pattern of Trump choosing "to trade away national security in search of quick handshake 'deals' to mitigate the harms of trade wars of your own making." "We urge you to reconsider this misguided strategy and ensure that our nation’s export controls are no longer used as a bargaining chip," said the letter, which was also signed by senators Elizabeth Warren, Chris Van Hollen, Jeff Merkley, Ben Ray Lujan, Andy Kim and Catherine Cortez Masto. https://www.reuters.com/world/us/top-democrats-slam-trump-delaying-export-curbs-china-2025-11-13/
2025-11-13 17:08
Nov 13 (Reuters) - Current benign international financial market conditions are an opportunity for Argentina to accelerate its accumulation of international reserves, the International Monetary Fund said on Thursday. "The recent improvement in market conditions does present a window of opportunity for the authorities to strengthen macroeconomic policies, to entrench stability and to accelerate reserve accumulation," said IMF spokesperson Julie Kozack in a scheduled press briefing. Sign up here. She added it was also a time for planned structural reforms, singling out the areas of tax and labor. The Fund said U.S. support for Argentina has helped stabilize markets and complements the objectives of the Fund's $20 billion program with the South American country. Kozack said the Fund has stressed to Argentina the need to accelerate reserves accumulation and maintain a consistent monetary and foreign exchange framework. "The choice of the FX regime is one for the country authorities," Kozack said. "Our view at the IMF is that the chosen regime needs to be consistent with strengthening international reserves and external stability." U.S. SUPPORT SUSPECTED Argentina's Special Drawing Rights holding at the IMF increased last month by the same amount as the United States' holding diminished, Fund data showed, suggesting the Trump administration came through in its support for Javier Milei's government as a payment to the Fund was due. The United States' holdings of SDR, the IMF's reserve asset, diminished by 640.8 million by the October 31 cutoff, the same amount that Argentina's holdings increased in the same period, according to the Fund's website. Argentina was due to make a payment to the Fund for just over 620 million SDRs on November 1, IMF data show. Asked whether the numbers indicated direct U.S. support, Kozack said: "The specific size and modalities of the support are bilateral matters between the US authorities and the Argentine authorities." https://www.reuters.com/world/americas/imf-says-market-conditions-are-opportunity-argentina-accumulate-reserves-2025-11-13/
