US Federal Reserve leads central banks across the world into rate easing period
After the Federal Reserve’s first interest rate drop of 2025 in September, two more cuts are on the table before the year ends. Central banks across the world are mostly following the same path.
Out of 23 major monetary authorities reportedly tracked by Bloomberg, 15 are expected to ease borrowing costs. That includes the Fed, which plans to keep trimming rates slowly into next year. The exception? Europe. Policymakers from Frankfurt to London are slamming the brakes on further cuts… at least for now.
Bloomberg says the global wave of monetary easing is back in motion, except in Western Europe. Central banks in the Nordics and the UK are now holding steady, waiting to see if inflation behaves.
Even Switzerland, expected to cut one last time into negative territory, isn’t staying there long. The Bank of Japan is the lone major player heading in the other direction, preparing to raise rates in the coming weeks.
Fed eyes more cuts while juggling Trump pressure and inflation fears
The Fed isn’t rushing though. It’s planning two more cuts by December and steady quarterly reductions through the first nine months of 2026. But the pace is slow. Officials are watching how President Donald Trump’s tariffs will hit prices.
Forecasts now show a higher end-point for rates in the US than what was predicted back in July. The central bank is tiptoeing, with one eye on inflation and the other on political pressure.
On October 28-29, Fed policymakers meet again. Markets expect another quarter-point cut. Last month’s move was just the beginning. The Fed wants to ease pressure on the labor market without letting inflation spike again.
Behind the scenes, the White House is turning up the heat. Trump is expected to name a new Fed chair soon, with Jerome Powell’s term ending in May.
The courts are also involved. Trump tried to fire Governor Lisa Cook, but the Supreme Court said no. That decision buys Cook time, at least until the court hears arguments in January. For now, that pause helps the Fed breathe, but the pressure isn’t going anywhere.
Meanwhile, BE’s global cost-of-borrowing gauges are climbing. At the end of 2026, both world and advanced-economy rates are projected to be about a quarter-point higher than before. That reflects economic resilience mixed with lingering inflation jitters.
Trump’s market-shaking moves haven’t made forecasting easier. Still, Bloomberg’s new numbers cover 90% of the world economy. It’s the best guess policymakers have for what’s next.
Europe holds rates as Japan signals hike and UK turns cautious
Europe’s message is clear: No more rate cuts. ECB officials think inflation is stable and the eurozone can still grow even with higher US tariffs. They’re not moving unless inflation dives.
Their last meeting in December will show new forecasts stretching out to 2028. If inflation drops below expectations again, even the hawks might bend and allow one more cut. But for now, they’re holding tight.
Japan’s central bank is moving the other way. Kazuo Ueda, head of the Bank of Japan, is getting ready to raise rates. Two of his board members voted against holding steady last month. Even one of the most dovish voices turned hawkish.
That jolted traders and opened the door for a hike as soon as October. Inflation’s been over the BOJ’s target for more than three years. US tariffs haven’t dented Japan’s economy much.
And now, Sanae Takaichi, the newly elected leader of the ruling party, may influence the BOJ’s direction. She’s pro-easing, but Ueda looks ready to break the deadlock.
In the UK, the Bank of England is stalling. Andrew Bailey, the governor, isn’t sure they’ll stick to the once-a-quarter cut plan. Recent meetings show big disagreements. Food prices are soaring, and households expect inflation to keep rising.
The next BoE meeting falls between September inflation data, likely to show 4% price growth, and the UK government’s autumn budget on November 26. That timing complicates everything.
This week is packed with economic events too. Tuesday brings NY Fed inflation expectations data. Wednesday, the Fed drops meeting minutes. Thursday, Powell speaks. And Friday could see the Jobs Report, if the US government ends its shutdown.
Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.
You May Also Like
Trump ally drops bombshell claim GOP 'deliberately' sabotaging him with impeachment plot
IBM Qiskit v2.3 Adds C API Expansion for Quantum-HPC Integration
The Role of Blockchain in Building Safer Web3 Gaming Ecosystems
- Immutable Ownership of Assets Blockchain records can be manipulated by anyone. If a player owns a sword, skin, or plot of land as an NFT, it is verifiably in their ownership, and it cannot be altered or deleted by the developer or even hacked. This has created a proven track record of ownership, providing control back to the players, unlike any centralised gaming platform where assets can be revoked.
- Decentralized Infrastructure Blockchain networks also have a distributed architecture where game data is stored in a worldwide network of nodes, making them much less susceptible to centralised points of failure and attacks. This decentralised approach makes it exponentially more difficult to hijack systems or even shut off the game’s economy.
- Secure Transactions with Cryptography Whether a player buys an NFT or trades their in-game tokens for other items or tokens, the transactions are enforced by cryptographic algorithms, ensuring secure, verifiable, and irreversible transactions and eliminating the risks of double-spending or fraudulent trades.
- Smart Contract Automation Smart contracts automate the enforcement of game rules and players’ economic exchanges for the developer, eliminating the need for intermediaries or middlemen, and trust for the developer. For example, if a player completes a quest that promises a reward, the smart contract will execute and distribute what was promised.
- Anti-Cheating and Fair Gameplay The naturally transparent nature of blockchain makes it extremely simple for anyone to examine a specific instance of gameplay and verify the economic outcomes from that play. Furthermore, multi-player games that enforce smart contracts on things like loot sharing or win sharing can automate and measure trustlessness and avoid cheating, manipulations, and fraud by developers.
- Cross-Platform Security Many Web3 games feature asset interoperability across platforms. This interoperability is made viable by blockchain, which guarantees ownership is maintained whenever assets transition from one game or marketplace to another, thereby offering protection to players who rely on transfers for security against fraud. Key Security Dangers in Web3 Gaming Although blockchain provides sound first principles of security, the Web3 gaming ecosystem is susceptible to threats. Some of the most serious threats include: