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Global central banks are reducing rates: Fed may not be so inclined


The Bank of England on February 6, 2025, in London, England.

Richard Baker | In images | Getty images

The Bank of England reduced interest rates for 25 basic points on Thursday, after the cut of the same European Central Bank 30. The meeting ends on Friday.

Many economies seem to be establishing in a low rate environment as policy formulators seek to boost economic growth. That is in marked contrast with the United States: it is not clear if the United States Federal Reserve would even comply with its two rates cuts in 2025, predicted in December, given the uncertainties on the economic impact of the policies of the president of the president of the president of the president of the United States, Donald Trump.

Before the inauguration of Trump, the US dollar began to strengthen and will reach its highest level in more than two years, measured by the US dollar index. That has already affected companies like Amazon, who blamed the currency for weighing their expected income in the current quarter.

The exceptionalism of the United States could still be in place for now, but an advantage can, after all, cut in both directions.

What you need to know today

Disappointing Amazon guide
Amazon The actions fell more than 4% after giving Disappointing income orientation for current quarterciting difficulties raised by a strong US dollar. According to the company’s forecast, the growth rate for quarter would be between 5% and 9%, the slowest increase since Amazon became public in 1997. That said, the technological giant exceeded profits and income expectations For the fourth quarter, and it is prepared to overcome Walmart as the Company S&P 500 with the highest quarterly income. Walmart reports on February 20.

Positive day for markets
Thursday, the S&P 500 Advanced 0.36% for their Third consecutive winning daywhile the Nasdaq compound It rose 0.51%. He Dow Jones industrialHowever, it lost 0.28%. Throughout the Atlantic, European markets were in a good mood. Paneuropeo Stoxx 600 index increased 1.17%, Closing a high record. The United Kingdom Ftse 100 He won 1.21%, also reached a new record.

Reduction rates of the Bank of England
He Bank of England lowered its reference interest rate In 25 basic points to 4.5%, its first cut of the year. All members of the monetary policy committee voted at lower rates, but two out of nine had voted for a greater cut of 50 basic points. The governor of the Central Bank, Andrew Bailey, said he waits for more cuts this year. The BOE also reduced its growth prognosis for the United Kingdom economy in 2025 to 0.75% of 1.5%.

China will respond to ‘bullying’
Tariffs imposed on China by the United States Donald Trump have caused a violent reaction of the second largest economy in the world. China will protect their interests “Before the acts of harassment on one side,” the spokesman of the Chinese Ministry of Commerce, He Yongqian, said on Thursday, according to a translation of CNBC. However, he added that China would not cause commercial disputes and remained ready to Solve problems through discussions.

(PRO) IBM exceeds Nvidia
No NvidiaNo Apple and not Amazon -The best performance stock in the Dow in the last three months has been IBMwhich rose 27%. However, the technology company needs Make more in the field of artificial intelligence So that their actions continue to work well, according to an investment director.

And finally …

People buy clothes at a Calvin Klein store in a shopping center in Beijing on February 5, 2025.

Adek Berry | AFP | Getty images

How Calvin Klein and Tommy Hilfiger were trapped in Trump’s trade war with China

China has included in the blacklist the owner of Calvin Klein and Tommy Hilfiger, which could force the company to close stores and manufacturing in the country, in an early impact of Trump’s commercial war. While the China Ministry of Commerce began investigating PVH September for allegedly refusing to obtain cotton from the Xinjiang region, which has become known for its Uyghur detention camps, Beijing officially placed the company on its list of “little reliable entities” on Tuesday.



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