_{US NEWS}

The Federal Reserve is expected to cut interest rates. How low will it go?

The Federal Reserve is expected to cut interest rates at its Sept. 17 meeting, likely by 0.25 percentage points, after nine months of holding rates steady. The move comes amid weakening labor market data, including downward job revisions, rising unemployment, and slowing hiring. Inflation remains above the Fed’s 2% target (2.9% headline, 3.1% core), but economists argue labor weakness outweighs inflation risks. President Trump has pressured the Fed for cuts, raising concerns over political influence, especially as his attempt to remove Fed Governor Lisa Cook heads to court. Markets see up to three rate cuts in 2025, though economists are split between two or three. The September vote may feature rare dissents, reflecting divisions inside the Fed over how aggressively to cut. Read More.

_{US NEWS}

Unrealized Losses in U.S. Banks Hold Steady in Q2

Unrealized losses in U.S. banks’ investment securities remained dangerously high in Q2 2025, with only a modest decline from $414 billion in Q1 to $397 billion. Most of the reduction came from banks selling off securities rather than any real recovery in asset values. According to FAU finance professor Rebel Cole, roughly $6 trillion remains tied up in these losing securities, choking off banks’ ability to extend new loans to consumers and businesses. While the number of banks with losses equal to at least half their CET1 capital fell from 24 in Q1 to 16 in Q2, the overall stability of the banking system remains in question. Regulators could force struggling banks to raise capital, merge, or even face closure if losses deepen. With interest rates and commercial real estate exposures adding further pressure, the challenges for U.S. banks appear far from over. Read More.