The United States Federal Reserve (Fed) will announce its monetary policy decision and publish its revised Summary of Economic Projections (SEP), known as the dot plot, after its September policy meeting on Wednesday. Market participants widely anticipate the US central bank will cut its benchmark interest rate for the first time since last December, lowering it to a range of 4%-4.25%. The CME FedWatch Tool shows that investors see only about a 6% chance of a larger rate cut, while pricing in about an 80% chance of a 75 basis point (bps) cut for the remainder of the year. This means the...
Federal Reserve Chair Jerome Powell will give a speech on the economic outlook and the Fed's review of its policy framework next Friday at the Kansas City Fed's annual central banking conference in Jackson Hole, Wyoming, the Fed said on Thursday. Powell's speech comes as data showing some impact of tariffs on inflation but the job market is also slowing, a combination fueling expectations for the Fed to cut interest rates by a quarter of a percent when it meets next month. U.S. President Donald Trump wants lower rates and is looking for a replacement for Powell, whose term ends in...
A 50-basis point interest rate cut next month could potentially send the wrong signal to markets about the state of the U.S. labor market, San Francisco Federal Reserve President Mary Daly told the Wall Street Journal. A soft July jobs report, as well as muted inflation data for the month, have fueled increased expectations that the Fed will slash borrowing costs at its September meeting. It would be the first drawdown by the central bank since it paused its policy easing cycle last December. Investors are now all but pricing in a 25-basis point reduction after the Fed's September 16-17...
U.S. Treasury Secretary Scott Bessent said Wednesday that short-term interest rates should be 1.5 to 1.75 percentage points lower than current levels, urging the Fed to begin a series of cuts starting with a 50bps reduction in September. Speaking to Bloomberg News television network, he said, "We should probably be 150, 175 lower. I think the committee needs to step back." The Fed's benchmark rate has been at an effective 4.33% since January, after three cuts late last year, as it monitors the economic impact of tariffs. President Trump has also pushed for cuts since early this year,...
Traders are now pricing in a 99% probability of a 25-bps interest rate cut at the September 17, 2025, Federal Reserve meeting, according to Investing.com's Fed Rate Monitor Tool. This is up from yesterday's probability of 91.4%. Further, traders now see a 1.4% probability of a 50-basis point cut at the upcoming meeting. Previously, there was zero chance of such an outcome. The current federal funds rate is at 4-1/4 to 4-1/2 percent. President Donald Trump and his administration have been pressing Fed Chair Jerome Powell for a cut for months, saying the high rates are costing the...
Richmond Fed President Thomas Barkin believes that consumer spending behavior—now increasingly selective and inclined to "trade down"—can mitigate price spikes caused by import tariffs, potentially making future inflationary pressures more moderate than feared. He conveyed this view in a series of speeches and comments this week, including ahead of an event titled "Why the Consumer Matters" scheduled for Wednesday evening WIB at the Greenville Chamber of Commerce. Barkin also signaled caution regarding the possibility of an interest rate cut in September, emphasizing the uncertainty...
Asia-Pacific markets traded higher, tracking Wall Street gains overnight.
Japan's benchmark Nikkei 225 rose 0.41% after hitting a fresh record high on Thursday, while the Topix added 0.61%. South...
Both the STOXX 50 and STOXX 600 hovered around the flatline on Friday, as investors adopted a cautious stance ahead of further developments in trade talks between US President Trump and Chinese...
The United States has rejected India's request for consultations at the World Trade Organization (WTO) regarding Washington's 50% tariffs on copper and copper derivative products, arguing that the...