Summary
Each week, I provide my views on the global macroeconomic environment, with a look ahead to the coming week and a look back at the previous one. Breaking down the top macro headlines around the world, I explain the key implications for investors—and what I think the mainstream news outlets could be missing. This week’s highlights include:
- The Federal Reserve cut rates by 25 basis points (bps), but Fed Chair Jerome Powell signaled that investors should not expect additional easing in the near term. I believe investors should temper their confidence regarding any near-term rate views until government data releases return to a timely schedule and we are able to piece together a more robust assessment of the economy.
- China’s Consumer Price Index inflation accelerated as expected, but Producer Price Index data slipped slightly further into deflation. Despite the anti-involution campaign aimed at reducing “destructive competition” and mitigating deflationary pressures, I expect inflation to remain undesirably low.
- Next week will be a busy week for central banks. I expect the European Central Bank to hold policy steady, the Bank of Japan to l hike rates by 25 bps, and the Bank of England to ease by 25 bps.
Important Information
Published on December 12, 2025.
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