UPDATE: The FTSE 100 has taken a hit as Rachel Reeves prepares for a crucial showdown with MPs on the Treasury Select Committee later today. As markets await a significant decision from the Federal Reserve, analysts predict a potential cut of 25 basis points by this evening, intensifying scrutiny on economic forecasts.
Reeves will address the committee starting at 10 AM today, where she will be questioned about the recent Budget leaks that have raised concerns over their impact on economic growth. Earlier this week, she faced tough questioning from MP Mel Stride, who demanded a direct answer on whether she authorized the leaks. Reeves firmly responded, stating, “No.”
As the Federal Reserve gears up for its decision at 7 PM UK time, pressure mounts on Chair Jerome Powell from economic stakeholders, including President Trump. Analysts from ABN AMRO Investment Management suggest that the Fed is “almost compelled” to act, potentially signaling a shift in U.S. monetary policy that could reverberate across global markets.
The FTSE 100 continues to reflect a cautious market sentiment, dropping slightly due to ongoing economic uncertainties and disappointing local economic data. Shares of British American Tobacco have notably dragged down the index, raising concerns over the broader implications for UK stocks.
Just a week ahead of the Bank of England’s own interest rate decision, Governor Andrew Bailey is expected to deliver insights on Thursday that could indicate a more dovish stance since the last meeting in November. The approaching decisions from both the Fed and the Bank of England are critical, as they could significantly influence economic conditions in the UK and beyond.
As the financial landscape shifts, stakeholders and investors are advised to stay alert for developments. The outcomes of these discussions and decisions will determine market movements, affecting everyday citizens and businesses alike.
Expect further updates as this story develops, and prepare for potential volatility in the markets following today’s key events.
