Lates News

KBRA Global Head of Sovereign Ratings Joan Feldbaum-Vidra said ahead of the Fed's rate decision that although the U.S. economy is performing strongly overall, recent nonfarm payrolls and job creation data have shown signs of softening in the labor market, a backdrop that supports the Fed adopting a wait-and-see approach. She also noted that the normalization of oil transportation in the Middle East typically helps oil prices ease over the medium term. However, given the risk that the conflict could escalate further after the U.S. midterm elections, oil prices remain at elevated levels. In addition, she said: "Large-scale borrowing needs from AI companies and the U.S. Treasury are keeping yields high, which to some extent helps the Fed achieve its own policy objectives."