Federal Reserve Lowers Interest Rates Amid Inflation Concerns

The slower-than-expected economic growth in the Philippines' third quarter, with a 5.2% annualized increase, raises the likelihood of a rate cut by the Bangko Sentral ng Pilipinas (BSP) in December, though a volatile peso complicates decisions. Economists suggest that while easing is necessary, significant currency fluctuations may lead the BSP to maintain current rates. In the U.S., the Federal Reserve has reduced interest rates by 25 basis points, with expectations for further cuts as inflation decreases to 2.4%. However, uncertainties linger post-election, particularly regarding President-elect Trump's potential influence on monetary policy, which could create inflationary pressures. This dual landscape of economic growth concerns in Asia and potential inflation in the U.S. reflects a complex global economic picture, affecting central banks' strategies worldwide. The upcoming months will be critical for both the BSP and the Federal Reserve as they navigate these challenges.