New York Fed President John Williams said that interest rates are in a comfortable place as the Fed’s first meeting of 2026 approaches, hinting that he and other U.S. central bankers may not be in a rush to bring interest rates lower this month.

Speaking at the Council on Foreign Relations in New York City Monday evening, Williams said that in the past 12 months the labor market has cooled, while the underlying trend in inflation appears to be easing into alignment with the Fed’s 2% target. That shifting balance prompted the Fed’s three quarter-point rate cuts between September and December, which have brought the central bank’s target interest-rate range down to 3.5% to 3.75%. (WSJ – Continue Reading) 

President Donald Trump said he is imposing a 25% tariff on goods from countries “doing business” with Iran, ratcheting up pressure on the government in Tehran that has been rocked by widespread protests.

Trump posted on social media on Monday that the new duty would be “effective immediately,” without providing further detail. The administration has yet to issue paperwork outlining the scope of the charges. (BBG – Continue Reading) 

New Zealand's business confidence in the fourth quarter improved and is now at its highest level since March 2014, a private think tank said on Tuesday.

A net 48% of firms surveyed expected general business conditions to improve compared with 18% optimism in the previous quarter, the New Zealand Institute of Economic Research's quarterly survey of business opinion showed. 

Christina Leung, Principal Economist at NZIER said in a press conference that the survey indicated that lower interest rates were finally starting to have an impact on the economy and the recovery was starting to gain traction. (RTRS – Continue Reading)