The US Federal Reserve is widely expected to lower borrowing costs this week, but deep divisions within the policy-making panel suggest further rate cuts will be harder to secure, analysts say.Policymakers are set to meet on December 9–10 amid a complicated economic backdrop, with inflation still running above the Fed’s 2% target even as hiring weakens and unemployment rises. Economists expect Chair Jerome Powell to back a quarter-point cut — the third this year — though dissent is likely to be unusually high, AP reported.Some analysts believe as many as three officials could vote against the cut, marking the most dissenting votes in six years. Only 12 of the Fed’s 19 rate-setting committee members vote on decisions, and several non-voting officials have also expressed opposition to further easing.“It’s just a really tricky time. Perfectly sensible people can reach different answers,” William English, economist at Yale School of Management and former senior Fed staffer, said, highlighting the challenge of building consensus.The debate has been complicated by sparse official data following the prolonged US government shutdown, which delayed employment and inflation readings. Inflation pressures would normally argue against rate cuts, while signs of labour market weakness point in the opposite direction.Most economists now expect a “hawkish cut” — a rate reduction accompanied by guidance suggesting the Fed may pause to assess economic conditions. Financial markets are increasingly focused on the tone of Powell’s commentary rather than the cut itself.Kansas City Fed president Jeffrey Schmid is expected to dissent again in favour of holding rates steady, potentially joined by St. Louis Fed president Alberto Musalem. Fed governor Stephen Miran may oppose the quarter-point move and instead argue for a larger half-point reduction.Expectations of a December cut firmed after New York Fed president John Williams said the recent rise in inflation appeared to be a temporary effect linked to tariffs, and that he still saw “room for a further adjustment” in rates. Market-implied odds of a cut now stand at about 89%, according to CME Fedwatch.Powell’s leadership is also being tested politically, as President Donald Trump has repeatedly criticised the Fed chair and signalled that a new chair will be appointed when Powell’s term ends in May.While concerns about unemployment — which rose to 4.4% in September — are driving support for a December cut, economists caution that additional easing will depend on upcoming data. The Fed will review a backlog of jobs and inflation reports before its next meeting in January, which could either justify further cuts or compel a pause.

New Delhi: The total revenues of the global airline industry are expected to reach $1.053 trillion in 2026, up 4.5 per cent from $1.008 trillion expected in 2025, the International Air Transport Association (IATA) said on Tuesday. Meanwhile, return on invested capital (ROIC) is expected to be 6.8 per cent, unchanged from 2025. “Despite deleveraging and improved operating profitability, ROIC is expected to remain below the weighted average cost of capital (WACC) estimated to be 8.2 per cent in 2026,” IATA noted in a statement.

The association said that in the upcoming year, airlines’ combined total net profit is projected at $41 billion, up from $39.5 billion in 2025. Profit numbers would set a new record, the net profit margin may remain unchanged at 3.9 per cent from the current year.

Net profit per passenger transported is expected to be $7.90, down from the 2023 high of $8.50. At the same time, operating profit in the industry would be $72.8 billion, up over 8 per cent from $67.0 billion in 2025 for a net operating margin of 6.9 per cent (improved on the 6.6 per cent expected for 2025).

The number of passengers is also expected to grow 4.4 per cent to 5.2 billion in 2026. As per the global air transport body, the load factors are expected to continue setting new record highs as airlines’ seat accuracy is expected to be 83.8 per cent in the coming year (2026).

Cargo volumes are expected to reach 71.6 million tonnes, up 2.4 per cent in 2025. “Airlines are expected to generate a 3.9 per cent net margin and a $41 billion profit in 2026. That’s extremely welcome news considering the headwinds that the industry faces—rising costs from bottlenecks in the aerospace supply chain, geopolitical conflict, sluggish global trade, and growing regulatory burdens among them,” said Willie Walsh, IATA’s Director General.

Meanwhile, according to IATA, deliveries of new aircraft began to pick up in late 2025, and production is expected to accelerate next year. “Demand is forecast to outstrip the availability of aircraft and engines. The normalisation of the structural mismatch between airline requirements and production capacity is unlikely before 2031-2034 due to irreversible losses on deliveries over the past five years and a record-high order backlog,” IATA highlighted.

The Pakistan Stock Exchange (PSX) surged to a fresh all-time high on Tuesday, with market participants showing positive sentiments following the International Monetary Fund’s (IMF) approval for a $1.2 billion loan for Pakistan.

The benchmark KSE-100 Index settled at an all-time high of 169,456.38 points, up 1,153.14 points, or 0.69%, from the previous close of 168,303.24. The index climbed to an intraday high of 169,601.03, gaining 1,297.79 points.

The market rally strengthened further following the IMF’s approval of nearly $1.2 billion under the Extended Fund Facility (EFF) and an additional $220 million under the Resilience and Sustainability Facility (RSF).

The move has kept the combined $8.4 billion programme on track and significantly lifted investor confidence.

The surge was largely fuelled by strong and consistent buying from local mutual funds, which helped sustain positive momentum throughout the session. Major index contributors collectively added around 640 points to the benchmark’s gains.

Trading activity also remained robust. Total volumes crossed 1.02 billion shares, while overall turnover rose to Rs51.1 billion. K-Electric (KEL) dominated the session as the volume leader with 86.7 million shares traded.

With solid liquidity, improving macro indicators, and renewed confidence, the record close reinforces the bullish trend steering the market forward.

The IMF will release $1bn under the EFF and $200 million under the RSF, bringing total disbursements under both programmes to $3.3 bn.

“Today, the Executive Board of the IMF completed the second review of Pakistan’s economic reform program supported by the EFF and the first review of Pakistan’s program supported by the RSF,” the IMF said in a statement.

This decision, it said, allows for an immediate disbursement of around $1 billion under the EFF and around $200 million under the RSF, bringing total disbursements under the two arrangements to about $3.3 billion

The IMF has described the implementation of the ongoing loan programmes as “strong” and has assured the government of continued support for its economic reforms. The release of $1.2bn is expected to further bolster Pakistan’s foreign exchange reserves.