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GDP · Inflation · Fiscal Policy
economy8th Pay Commission May Retain 2.57 Fitment Factor Amid Concerns
The 8th Pay Commission is likely to retain the fitment factor close to 2.57 due to fiscal burden concerns. This decision impacts government employees' salaries and is part of broader fiscal management efforts.
economyUS Weekly Jobless Claims Drop Amid Seasonal Adjustments
US weekly jobless claims fell more than expected last week, influenced by the Juneteenth holiday and seasonal factors. Despite fluctuations, the labor market remains stable, with no significant layoffs reported.
economyUS Revises Q1 GDP Growth to 2.1% Amid Import Adjustments
The US has revised its first-quarter GDP growth for 2026 to 2.1%, up from a previous estimate of 1.6%. The adjustment was mainly due to a downward revision in imports, with significant contributions from the AI-driven information services sector.
economyTokyo Core Inflation Rises as Energy Costs Broaden Price Pressures
Tokyo's core CPI rose 1.6% in June, driven by rising energy costs. The Bank of Japan is closely monitoring these inflationary pressures as it prepares for its policy meeting. The BOJ recently raised interest rates to a 31-year high, signaling readiness to tighten further.
economyRBI Faces Balancing Act Amid Falling Oil Prices and Inflation Concerns
With crude oil prices falling, the RBI's growth forecasts for FY27 may be more optimistic, but supply chain disruptions and inflation concerns persist. The central bank faces a delicate balance in its monetary policy decisions, considering current financial conditions and foreign currency inflows.
economyIndia's Growth Rate: Is 6.5% Enough to Avoid the Middle Income Trap?
Economists agree that India's 6.5% growth rate is sustainable but insufficient for achieving 'Viksit Bharat'. The country risks remaining in the middle income trap without increased private investment and effective policy execution.
economyUS Job Growth Resilient in May Amid Economic Pressures
US employers added 172,000 jobs in May, indicating labour market resilience despite economic pressures from the Iran war. Unemployment held steady at 4.3%, with broad-based hiring and moderate wage growth.
economyFed's Schmid Weighs Patience Against Rate Hikes Amid Inflation
Federal Reserve official Schmid has expressed concerns about rising inflation, which has reached approximately 3.5%. The Fed is contemplating whether to remain patient or increase interest rates to manage inflationary pressures. The upcoming Fed meeting on June 16-17 will be closely watched for any policy changes.
economyUS Jobless Claims Rise Unexpectedly; Labor Market Holds Steady
U.S. jobless claims rose to 225,000, exceeding expectations, yet layoffs remain low, maintaining a stable labor market. The Federal Reserve's Beige Book indicates minimal employment changes, while geopolitical tensions have not yet impacted the labor market.
economyUS Economy Thrives; India Urged to Boost Reforms and AI Use
Ajay Srivastava urges India to focus on economic reforms and AI adoption, highlighting the robust US economy. He emphasizes the need for global diversification and technological change for Indian investors.
economyFed's Warsh Faces Inflation Challenges Amid Economic Strain
New Fed Chair Kevin Warsh faces rising inflation pressures as the U.S. economy grapples with energy-related costs linked to the Iran war. The Beige Book highlights weakening consumer demand and rising costs, presenting a challenging scenario for the Fed.
economyUS Fed Reports Iran Conflict Fuelling Inflationary Pressures
The Federal Reserve's Beige Book indicates that the US-Iran conflict is driving inflation, with energy prices soaring due to the blockade of the Strait of Hormuz. Economic activity shows slight to moderate growth, while manufacturing hiring remains strong.
economyUS Proposes New Tariffs Amid Forced Labour Investigation
The Trump administration has proposed new tariffs of 10% to 12.5% on imports from major trading partners following a forced labour investigation. The move aims to recover lost tariff revenue and create a fairer competitive environment for US workers.
economyRBI Warns West Asia Conflict May Impact India's Growth
The Reserve Bank of India warns that the West Asia conflict could impact India's growth outlook, citing risks such as elevated energy prices and supply chain disruptions. The central bank projects inflation to rise and highlights the need for continuous assessment of global developments.
economyJapan's Inflation Eases as Energy Costs Loom Large
Japan's core CPI for Tokyo rose 1.3% in May, below expectations, as government measures eased household expenses. Economists warn of potential inflationary pressures due to rising crude oil prices. The BOJ faces a balancing act between inflation control and economic growth.
economyFed's Cook Signals Readiness to Raise Rates Amid Inflation Concerns
Federal Reserve Governor Lisa Cook has indicated her willingness to raise interest rates if inflation does not ease, citing concerns over rising prices due to tariffs, oil prices, and AI sector demand. Her stance presents a challenge for Fed Chair Kevin Warsh, who is expected to lower rates once geopolitical tensions ease.
economyUS Consumer Confidence Declines Amid Rising Inflation Concerns
Consumer confidence in the U.S. declined in May due to rising inflation concerns linked to the Middle East conflict. Increased mentions of prices and geopolitical tensions reflect consumer anxiety about economic impacts.
economyIndia's Markets Face Triple Test Amid Economic Challenges
India's financial markets are facing challenges in defending the rupee, hedging oil price shocks, and investing in stable assets. Policymakers are revisiting historical strategies to address these issues effectively.
economySupply-Side Pressures and Weather Uncertainty Impact India's Macros
India's macroeconomic strength is driven by domestic demand, but supply-side pressures and weather uncertainties pose challenges. Inflation trends and trade deficits are key areas to watch.
economyIndia's FDI Inflows Surge Amid Global Economic Uncertainty
India's FDI inflows surged to $94.5 billion in 2025-26, up from $80.6 billion the previous year, driven by strong investor confidence. Despite global uncertainties, net FDI inflows rose sharply, while external borrowings decreased.
economyUS Fed Governor Advocates for Potential Interest Rate Adjustments
Fed Governor Christopher Waller supports removing the 'easing bias' from policy statements amid rising inflation. The Fed faces internal division as it navigates geopolitical tensions and economic uncertainty.
economyKevin Warsh Faces Inflation Challenges as New US Fed Chair
Kevin Warsh has been sworn in as the new Chair of the US Federal Reserve, facing immediate challenges with high inflation and economic shocks. His decisions on interest rates will be pivotal as the Fed's next meeting approaches.
economyBitcoin Steadies at $77,000 Amid US Credit Downgrade Concerns
Bitcoin remains stable at $77,000 despite US credit downgrade and $648 million in ETF outflows. Investors await FOMC minutes for future market direction.
economyUS Dollar Strengthens Amid Rate Hike Speculation and Geopolitical Tensions
The US dollar hits a six-week high amid inflation fears and Iran conflict, impacting global markets. Indian investors should watch for currency and interest rate shifts.