Hassett Says Federal Reserve Can Reject Trump’s Views if He Is Chair

Inflation in Canada unexpectedly held steady last month while core measures broadly cooled, as slowing price growth for services was offset by rising costs of goods.

Headline inflation rose at a 2.2% yearly pace in November, matching the pace in October, Statistics Canada data showed Monday. That was slower than the median expectation of 2.3% in a Bloomberg survey of economists.

On a monthly basis, the consumer price index rose by 0.1%, matching expectations.

The Bank of Canada's two so-called preferred core measures, the median and trim gauges, decelerated to a 2.8% annual pace, from 3% previously. On a three-month moving annualized basis, they slowed to 2.3%, from 2.6% in October.

The central bank has, in recent months, placed less emphasis on these two metrics and instead said a broad range of measures points to underlying inflation of about 2.5%.

Looking at a variety of metrics, core price pressures generally cooled or held steady in November. Excluding food and energy, prices rose 2.4% from a year earlier, down from 2.7% in October. Inflation excluding gasoline prices rose at a 2.6% pace for the third straight month. And the bank's previous measure of core inflation -- CPI excluding eight volatile components and indirect taxes -- held at 2.9%.

Still, the breadth of inflationary pressures widened, with about 42% of items in the consumer price index rising above a 3% yearly pace, from 34% previously.

Altogether, the report shows headline inflation trending down toward the central bank's 2% target, even as some measures of underlying inflation remain closer to 3%. The Bank of Canada is likely to be unfazed by ongoing core pressures, as it sees continued slack in the Canadian economy as US tariffs batter key sectors and weigh on business investment and consumer spending.

The central bank held its policy rate steady at 2.25% last week and reiterated it sees borrowing costs at "about the right level" to support growth while keeping inflation contained. Governor Tiff Macklem set the bar relatively high for a move off the sidelines, saying the bank will respond if there is "a new shock or an accumulation of evidence" that "materially changes the outlook."

Policymakers expect inflation to remain close to the 2% target, around where it's been for more than a year.

In November, lower prices for travel tours and accommodation, as well as slower growth in rent prices, put downward pressure on headline inflation. Higher costs of groceries, as well as a smaller decline in gasoline prices, were the main upside contributors.

Lower travel prices were driven partly by a base-year effect, as Taylor Swift performed in Toronto in November 2024.

Grocery prices rose 4.7% in November, the largest increase since December 2023, as the cost of fresh fruit jumped and prices for beef and coffee continued to be significant contributors. Prices rose at a faster pace in five provinces, led by New Brunswick.

The report is the first of two inflation releases before the central bank's next rate decision on Jan. 28. Traders expect the bank to hold rates steady until at least October 2026, when they see a possible hike.

Source: Bloomberg Europe

Russia is considering extending its diesel and gasoline export restrictions until February, according to reports from state news agencies on Monday that cited anonymous sources.

Russian Deputy Prime Minister Alexander Novak led a meeting on the fuel market on Monday with participants from the energy ministry, Federal Anti-Monopoly Service, and oil company representatives.

A spokesperson for Novak said no decision had been made yet regarding the extension of export restrictions. Following the meeting, the government stated that fuel producers had maintained a balanced supply.

"There is a downward trend in fuel prices in the small wholesale segment. Agricultural producers are being supplied with the necessary fuel volumes," the government said.

Russia implemented a partial ban on diesel exports in late September and has already extended its gasoline export ban through the end of the year.

Source: Investing

Belarusian opposition figures Maria Kolesnikova (Maria Kalesnikava) and Viktor Babaryko attend a press conference after their release yesterday, amid Russia's attack on Ukraine, in Chernihiv, Ukraine, December 14, 2025. Ukraine received 114 prisoners released by Belarus on Saturday, Kyiv's POW coordination center said, including...

Germany will offer refuge to Maria Kalesnikava and Viktar Babaryka, two prominent Belarusian opposition leaders freed at the weekend after more than five years in prison, Interior Minister Alexander Dobrindt said.

Dobrindt told broadcaster ARD that Berlin had a "great interest" in strengthening Belarus' democracy movement in exile. "That is why we will take in two outstanding opposition politicians who were imprisoned," he said, adding the government would act quickly to provide sanctuary.

Kalesnikava and Babaryka were among 123 political detainees released by President Alexander Lukashenko after negotiations with a U.S. envoy led to a partial lifting of U.S. sanctions on Belarusian exports.

Most of those freed were taken to Ukraine or Lithuania, among them Nobel Peace Prize winner

Kalesnikava, opens new tab, a professional musician who spent 12 years living in Germany before returning to Belarus, became a leading figure in the 2020 protests against Lukashenko's disputed re-election. She was arrested after refusing forced expulsion, famously tearing up her passport at the border.

In 2021, she was sentenced to 11 years for conspiracy to seize power and extremist activity.

Babaryka, a former banker, was barred from running in the election and jailed for 14 years on corruption charges he denied.

Both endured harsh prison conditions and long periods of isolation.

Babaryka said his son Eduard remains among Belarus' political prisoners. The Viasna rights group estimates there were 1,227 political prisoners before Saturday's releases.

Source: Reuters

With Federal Reserve Chairman Jerome Powell's term nearing its end, the number of candidates for the next FED chairman has narrowed down to two.

Kevin Hassett, one of the names mentioned alongside Kevin Warsh for the Fed chairmanship, has made new statements.

Appearing on CBS's Face the Nation, Kevin Hassett vowed to resist pressure from the White House.

Kevin Hassett, director of the White House National Economic Council (NEC) and a potential candidate for the Fed chairmanship, stated that he would not be affected by President Donald Trump's attempts to influence central bank policy. He said Trump would have no influence on the Fed's interest rate decisions.

In an interview with CBS's Face the Nation program, Hassett emphasized the independence of the Fed, stating:

"President Trump's views will have no effect on Fed policy. Of course, Trump's views are important."

However, the Chairman's views can only be considered if they are deemed valid based on data. This is because the Fed's role is to maintain its independence, and the final decision-making authority rests with the 12 members of the Federal Open Market Committee (FOMC).

Trump has repeatedly emphasized in his statements that the new Fed chairman should be someone who favors interest rate cuts, and he is expected to announce the new Fed chairman no later than the beginning of January.

Finally, while Hassett has emerged as the strongest contender, prediction markets have indicated that his chances of winning have weakened somewhat. Earlier this month, Kalshi and Polymarket had shown that Hassett's probability of being nominated as the next Fed chairman had risen to 85%, but this has dropped following President Trump's recent statements. Currently, according to Polymarket data, Hassett maintains his lead at 52%, while Warsh follows at 40%.

Source: CryptoSlate

Bond Market Softens as Investors Turn Defensive

Shutdown Backlog Sets Stage for Volatile Week

Inflation Report in Focus as Fed Pivot Watch Intensifies

Other Data to Watch: Jobless Claims and Housing

Source: CNBC