Chatham Financial

Bloomberg Daybreak Europe invited Jackie Bowie in studio to discuss what factors were likely to influence the Bank of England's decision to hold rates in their last meeting of 2024. Jackie covered the dilemmas the BoE faces, namely a weak growth outlook, stubborn inflation, rising headline CPI, and a softer labor market. #BankofEngland #Bloomberg #inflation #labormarket

Today, the Bank of England kept interest rates on hold at 4.75% in its final policy meeting of the year, as it tries to navigate the dual challenge of stubborn inflation and stagnating economic growth. The Bank’s decision followed the release of U.K. inflation and wage growth data that suggests price pressures are still present, and the labour market remains resilient. Read the recap ▶️ https://lnkd.in/e8rbey7b The European Central Bank continued to ease its monetary policy in December, cutting its key rates by 25 basis points, bringing the deposit rate to 3%, its lowest level since March 2023. The decision reflects a balance between lingering inflation concerns among some ECB members and growth risks that appear to be the bigger concern. #BankofEngland #EuropeanCentralBank #interestrates #inflation

Today, the #FOMC voted 11 to 1 to decrease the fed funds rate to a target range of 4.25%–4.50%. ▶️ Read the full update: https://lnkd.in/eKhHDuHj This marks 100 basis points of interest rate cuts since the FOMC began adjusting the target range at the September 2024 meeting. To justify further rate cuts, Powell emphasized the need for clear progress against #inflation. #interestrates #monetarypolicy #FederalReserve

As we close out 2024, we reflect on a year defined by collaboration, innovation, and growth. Together with our clients and partners, we’ve navigated challenges, embraced new technologies, and transformed risks into meaningful outcomes. Looking ahead to 2025, we remain dedicated to strengthening partnerships and supporting the success of those we serve. The collective achievements of this past year set the stage for even greater milestones in the year ahead. Wishing you a joyous holiday season and a prosperous new year!

Last week’s releases of productivity and costs, CPI, PPI, and import/export prices marked the final inflation reports the Fed will consider before their #FOMC meeting on Wednesday. ▶️ Read the full update: https://lnkd.in/evuR4uVm Similar to the November jobs report, depending on how you view the report data, there is a case to be made that the Fed should continue on its current path. However, there is also evidence that would support a pause. While markets expect a rate cut this week, with odds pricing it at 98%, they anticipate a pause in January. #InterestRates #MarketUpdate #Inflation #FederalReserve

Curious how your peers are planning for 2025? 3000+ capital market professionals shared valuable insights on topics such as: ▪️ Interest rates ▪️ The evolving cost of capital ▪️ Global FX trends and risks ▪️ The role of technology in markets Request our 2025 Capital Markets Outlook, featuring fresh perspectives on the current and future economy. You'll get practical takeaways to stay ahead in the year to come. ▶️ Get your report today: https://lnkd.in/eKYgHHdP ◀️ #CapitalMarkets #EconomicOutlook #MarketInsights #InterestRates

As the Chatham team continues to grow, we were delighted to celebrate the opening of our new London office last week. Thank you to everyone who joined us and to Neil Shearing, group chief economist at Capital Economics, for sharing his valuable insights. As the largest independent financial risk management firm, we remain committed to investing in our people and spaces to deliver the best possible outcomes for our global clients. #London #LondonBusiness #CapitalMarkets #EconomicInsights

Several key reports were released last week related to the #employment situation in the U.S. ▶️ Read the full update: https://lnkd.in/ej5kwKm6 Investors are keenly focused on jobs data since the #Fed shifted its stance late last year, stating that it was time to lower rates as risks were balanced, and there were signs that the #labormarket was cooling. While the labor market has slowed, it remains more resilient than expected. Depending on how you view the latest data, there is a case to be made that would keep the Fed on its current path, but plenty of data also supports slowing the pace of rate cuts. #MonetaryPolicy #FederalReserve #MarketUpdate #EconomicOutlook

In our latest survey, 78% of respondents predicted the 10-year #Treasury yield would decline by 25 bps or more by the end of 2025, a notable jump from last year’s 51%. But with yields recently rising 75 bps, the path to lower rates may not be as clear as it seems. Explore how recency bias, market dynamics, and #monetarypolicy may shape the road ahead. Plus, see why scenario planning is critical for navigating uncertainty. Read the full report here: https://lnkd.in/e6sPEM4y #InterestRates #CentralBanks #FOMC #BoE #ECB #MarketOutlook

Markets had quite a bit of data to digest last week. Starting with the announcement on Friday, November 22, President-elect Donald Trump nominated Scott Bessent to lead the Treasury. ▶️ Read the full update: https://lnkd.in/eTBtBysb With further tariff threats, the declared ceasefire between Israel and Hezbollah, and numerous economic data releases during the first half of the week, investors had plenty to ponder. #MarketUpdate #Treasury #EconomicData