Central Banks Back Fed as Banxico Hints at Rate Pause

This week in finance news, global and local monetary policy took center stage, as central bankers reaffirmed support for the US Federal Reserve’s independence and Banxico signaled a possible pause in Mexico’s easing cycle. Inflation in Mexico closed 2025 at a five-year low, creating room for caution as markets adjust to shifting interest rate expectations.

More news below:

Central Bankers, CEOs Rally Behind Fed’s Powell Amid Threats

The confrontation between the Trump administration and the Federal Reserve escalated this week following the opening of a criminal investigation into Fed Chair Jerome Powell. The move has triggered bipartisan backlash in Congress, warnings from global credit rating agencies, and an unprecedented show of solidarity from international central bank leaders.

Banxico Hints at Pause in Easing Cycle, Holding at 7.0%

The Governing Board of Mexico’s Central Bank (Banxico) closed 2025 with its benchmark interest rate at 7.00%, as announced on Dec. 18, continuing a monetary easing cycle amid slowing economic activity and easing inflationary pressures. However, policymakers signaled they will assess a potential pause in further rate cuts.

Mexico Inflation Hits Five-Year Low in 2025

Mexico’s inflation slowed more than expected at the end of 2025, driven mainly by falling fruit and vegetable prices that eased non-core inflation, even as food costs and the basic consumption basket continued to rise. According to the National Consumer Price Index (INPC), headline inflation in Mexico closed 2025 at 3.69% year-on-year, below market expectations and lower than the 4.21% recorded in December 2024.

VelaFi Secures US$20 Million in Series B Funding Round

Financial infrastructure provider VelaFi has completed a US$20 million Series B funding round, bringing its total capital raised to more than US$40 million. The round was led by XVC and Ikuyo, with participation from Alibaba Investment, Planetree, and existing shareholder BAI Capital.

Azcárraga Jean Reshapes Televisa Holding, Backs Ollamani

Mexican businessman Emilio Azcárraga Jean has agreed to sell a minority stake in Grupo Televisa, reducing his direct exposure to the media conglomerate while retaining overall control, as he shifts greater focus toward Ollamani, the sports and entertainment company spun off from Televisa.

Rate Cuts and New Regulations: The Year in Finance 2025

The Mexican finance and fintech sectors navigated a year of significant policy shifts and market maturity in 2025, marked by a decisive monetary easing cycle and the rollout of long-anticipated financial regulations. The twin pressures of a slowing economy and a deepening regulatory environment are consolidating the market, demanding greater operational rigor from both traditional banks and high-growth financial technology firms.

Public Investment Declines 27.5% During Late 2025

Mexico’s federal government is prioritizing fiscal consolidation by reducing public investment, a move experts warn will constrain national economic growth through 2026. From January to November 2025, public investment spending fell to MX$685.35 billion, a 27.5% real annual decrease, according to the latest data from the Ministry of Finance and Public Credit (SHCP).

JPMorgan Chase to Acquire Apple Credit Card From Goldman Sachs

JPMorgan Chase has reached an agreement to take over the Apple credit card portfolio from Goldman Sachs, the banks announced Jan. 7. The deal, which follows more than a year of negotiations, involves the transfer of approximately US$20 billion in card loans as Goldman Sachs moves to complete its exit from the consumer finance sector.