Economy

India's growth
Sources: Miscalculation of 50 tons of gold behind India's currency fall

A surge in India's gold imports in November pushed the country's trade deficit to record levels while the currency fell to a new low. But according to sources to Bloomberg, it's all about a calculation error.

Officials are said to have recalculated gold deliveries twice, resulting in an overstatement by as much as 50 tons. Total imports for the full year could still be in the range of 800-1,000 tons, the sources estimate.

Now, efforts are underway to correct the data. If the error can be proven, the macro figures will be revised and the exchange rate will most likely normalize, writes Bloomberg.

Fed vs. inflation
Fed cuts as expected - sees fewer cuts in 2025

The Federal Reserve cuts interest rates as expected by 25 basis points. The new policy rate will land in the range of 4.25 to 4.50 percent. Cleveland Fed President Beth Hammack was the only member who voted to keep the interest rate unchanged, several media outlets report.

The Fed now expects two interest rate cuts in 2025, down from the September forecast of four cuts. The adjustment was in line with the average estimate among analysts, according to Bloomberg.

Wall Street is backing off on the announcement.

Analyst: Sudden pause when Trump entered the room

The Federal Reserve did as expected and cut interest rates with a “hawkish twist,” as SEB economist Robert Bergqvist puts it.

“Now the Fed needs a ‘monetary policy time-out’ to bring Trump’s policies into the decision-making equation,” he writes on X.

Many analysts are simultaneously reacting to the new forecast, with fewer cuts in 2025, and its political significance. Donald Trump is expected to put pressure on the central bank to continue cutting, Bloomberg reports.

“The risk now is that the economy slows down and the Fed passively tightens without doing anything. It is interesting that the Fed cuts interest rates by 100 basis points in 2024 and then suddenly stops when Trump steps into the room,” writes Neil Dutta at Renaissance Macro.

Fitch’s US economist Olu Sonola notes that uncertainty has increased compared to the last meeting.

“We must be ready for a turbulent monetary policy journey in 2025,” he writes.

The future of the defense
The defense bought properties worth four billion this year

The defense has bought properties worth 3.7 billion kronor this year alone through the Fortifications Agency, reports Dagens Nyheter. The majority, 2.4 billion kronor, is connected to the purchase of a new office of 20,000 square meters in central Stockholm.

In addition, the Swedish Fortifications Agency has paid, among other things, 12 million kronor to buy back Åmselebasen, which was sold to three private individuals for 2.6 million kronor in 2005.