<p><strong>GLOBAL: </strong>US Federal Reserve (Fed) Chair Kevin Warsh declined to hint whether a policy rate hike remains on the table. While inflation risks have moderated in recent weeks, Warsh said that prices are still too high.&nbsp;</p>

<p><strong>Market impact: </strong>US Treasury yields and the dollar strengthened following Warsh’s remarks, while US equities retreated amid tech weakness.&nbsp;</p>

<p><strong>Metrobank expects the Fed to keep rates steady in 2026, </strong>as the central bank assesses resilient economic growth, high inflation, and heightened global uncertainty.&nbsp;</p>

<p><strong>LOCAL: </strong>The Philippines has been reclassified as an upper-middle income economy by the World Bank, achieved a gross national income per capita of USD 4,850, surpassing the USD 4,636 threshold required for upper-middle income status.&nbsp;</p>

<p><strong>Market impact: </strong>The PSEi rebounded on bargain hunting, while the peso weakened amid broad US dollar strength.&nbsp;</p>

<p><strong>Despite the positive milestone, </strong>economic headwinds such as the Middle East conflict, El Niño, and fiscal concerns suggest that the country's “slowflation” story will continue.&nbsp;</p>