<p><strong>GLOBAL: </strong>US Federal Reserve (Fed) Vice Chair Philip Jefferson signaled that the central bank is prepared to tighten monetary policy, warning that rate hikes could be back on the table if inflation fails to show signs of cooling.</p>

<p><strong>Market impact: </strong>US Treasury yields rose on hawkish Fed signals, while stocks fell amid a tech-sector sell-off.</p>

<p><strong>Metrobank expects the Fed to keep its policy rate unchanged </strong>for the rest of the year as it assesses inflation trends and labor market conditions. However, markets continue to price in at least one rate hike, reflecting persistent inflation.</p>

<p><strong>LOCAL: </strong>President Ferdinand Marcos Jr. has announced a fresh round of financial assistance designed to reach 7.5 million low-income households. Benefits include a monthly stipend of PHP 2,000 for six months and a one-time cash grant of up to PHP 2,000.</p>

<p><strong>Market impact: </strong>The PSEi rose on optimism over earnings, while the USD/PHP exchange rate eased amid softer US inflation.</p>

<p><strong>Cash transfers will help mitigate the impact of elevated energy costs on purchasing power,</strong> enabling low-income households to sustain essential spending.</p>