The Affordability Mandate: Powell Pledges "Years" of Real Wage Gains, Solidifying Commitment to 2% Inflation
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The Affordability Mandate: Powell Pledges "Years" of Real Wage Gains, Solidifying Commitment to 2% Inflation

Federal Reserve Chair Jerome Powell dramatically broadened the Fed's mandate beyond simply returning inflation to target. By stating it will "need to have some years where wages outpace inflation for people to feel good about affordability," Powell has anchored the central bank's policy to improving living standards—a concept known in Global Markets Eruditio as prioritizing "real wages.”

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The Hidden Cracks: Australian Jobless Rate Holds Steady at 4.3%, But Soaring Underemployment Hints at RBA Headaches
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The Hidden Cracks: Australian Jobless Rate Holds Steady at 4.3%, But Soaring Underemployment Hints at RBA Headaches

Australia's November 2025 Labour Force Survey presents a complex picture, with the headline unemployment rate holding steady at 4.3% in seasonally adjusted terms. However, a sharp decline in full-time employment (down 56,500) and a corresponding jump in the underemployment rate (up to 6.2%) suggest underlying slack is growing in the labor market

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Loonie Liftoff? Canada’s Jobs Boom Complicates BoC’s Rate Cut Path
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Loonie Liftoff? Canada’s Jobs Boom Complicates BoC’s Rate Cut Path

The November 2025 Labour Force Survey (LFS) from Statistics Canada surprised markets, showing a powerful rebound in the job market that defies the narrative of an economy struggling under high interest rates. The key takeaway is the dramatic 0.4 percentage point fall in the unemployment rate, dropping to 6.5%—the largest one-month decline since early 2022.

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Inflation Relief? Falling Expectations in Consumer Sentiment Offers a Lifeline to the Fed
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Inflation Relief? Falling Expectations in Consumer Sentiment Offers a Lifeline to the Fed

The preliminary US Index of Consumer Sentiment for December 2025 ticked up slightly to 53.3, defying expectations of continued decline. While the overall mood remains "broadly somber," the key takeaway for Forex Traders is the significant and sustained drop in year-ahead inflation expectations to 4.1%—the lowest level since January 2025.

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The Services PMI Dilemma: Growth Continues, But Jobs and Prices Soften—A Mixed Signal for the USD
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The Services PMI Dilemma: Growth Continues, But Jobs and Prices Soften—A Mixed Signal for the USD

Economic activity in the U.S. services sector, the largest component of the national economy, extended its growth streak in November 2025. According to the latest ISM Services PMI Report, the headline index rose slightly to 52.6%, up from 52.4% in October, marking the ninth time the index has been in expansion territory this year.

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