Last week’s Fed Beige Book indicates a slowdown in the US economy. Of the report generated by the 12 regional districts, only three indicated modest growth, while the others pointed to weaker economic conditions.

The report highlighted inflationary pressures due to tariffs, as rising prices are being passed on to consumers. It also noted how shutdowns are affecting businesses and eroding community confidence amidst ongoing uncertainty. In addition, key economic data has been withheld due to the shutdown.

In his recent remarks, Fed Chairman Powell noted that the hiring process has slowed and the tightening of immigration controls is leading to structural pressures that are affecting job openings. Powell’s comments on the economy were viewed as dovish, raising the likelihood of a rate adjustment in the upcoming meetings.

Two significant developments have been influencing financial markets. Ongoing trade tensions between the US and China continue to create market uncertainty. Additionally, the US stock market is under pressure, with banking stocks declining on Thursday before recovering, as US banks reportedly borrowed nearly USD 15 billion from the Federal Reserve’s Standing Repo Facility (SRF).

The restructuring of loans is once again putting significant pressure on banks, prompting them to utilise their borrowing options. This borrowing represents the highest amount in two days since the onset of Covid.

Despite these challenges, reports indicated that global........

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