Thursday, 18 September 2025
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Fed's Powell may struggle to convey calm amid market turmoil
Thursday, 20 March 2025 00:45 WIB | FISCAL & MONETARY |Federal Reserve

Will the Fed signal more or less rate cuts? Higher inflation expectations and dimmer growth prospects compete with each other. All eyes are on Chair Powell.
Fed may opt for patience amid panic
The Federal Reserve (Fed) is projected to leave interest rates unchanged at its March meeting. However, every word that Chair Jerome Powell says and every change to the bank's forecasts are critical for markets.

In the last "dot plot" in December, the bank signaled only two rate cuts are due in 2025, half of what it previously forecasted. That hawkish twist came as the economy looked strong and inflation was still not low enough.
Since then, President Donald Trump entered the White House, announcing tariffs and aiming to do more. That pushed inflation expectations higher while plunging consumer confidence. Markets and the Fed still do not have hard data to show how the economy reacted and may, therefore, wait.

By conveying a message of patience, Powell would soothe markets. A hawkish tone against inflation would support the US Dollar, while going dovish and signaling rate cuts would send Gold further up.

Source: Fxstreet

RELATED NEWS
Fed Cuts Interest Rates, Hints At Further Cuts; Miran Dissents ...
Thursday, 18 September 2025 05:11 WIB

The Federal Reserve cut interest rates by a quarter percentage point on Wednesday and indicated it would continue lowering borrowing costs through the end of the year, as policymakers responded to sig...

Fed Cuts Rates as Expected...
Thursday, 18 September 2025 01:07 WIB

The Federal Reserve cut the federal funds rate by 25bps during its September 2025 meeting, bringing it to the 4.00%–4.25% range, in line with expectations. It is the first reduction in borrowing cost...

Federal Reserve set to resume interest-rate cuts as concerns over labor market mount...
Wednesday, 17 September 2025 17:15 WIB

The United States (US) Federal Reserve (Fed) will announce monetary policy decisions and publish the revised Summary of Economic Projections (SEP), the so-called dot plot, following the September poli...

Fed decision day arrives...
Wednesday, 17 September 2025 16:05 WIB

The Fed is widely expected to slash interest rates at the conclusion of its latest two-day policy gathering, although the size of the possible drawdown and commentary around the move remain a source o...

Indonesia Surprises Markets with Rate Cut to Boost Growth...
Wednesday, 17 September 2025 15:46 WIB

Bank Indonesia unexpectedly cut its benchmark interest rate by 25 bps to 4.75% at its September 2025 policy meeting, marking the third consecutive monthly rate cut and defying market expectations to h...

LATEST NEWS
Fed Cuts Interest Rates, Hints At Further Cuts; Miran Dissents

The Federal Reserve cut interest rates by a quarter percentage point on Wednesday and indicated it would continue lowering borrowing costs through the end of the year, as policymakers responded to signs of weakness in the labor market. The move...

US Stocks Mixed After Fed Decision

US stocks closed mixed on Wednesday (September 18) as investors weighed the Federal Reserve's interest rate outlook following an anticipated 25 bps rate cut. The S&P 500 and Nasdaq 100 fell 0.1% and 0.3%, respectively, while the Dow Jones...

Oil Prices Weaken On US Demand Concerns

Oil prices weakened on Wednesday after data showing rising US diesel stockpiles fueled demand concerns and the US Federal Reserve cut interest rates as expected. Brent crude futures closed 52 cents, or 0.76%, lower at $68.22 a barrel, while US...

POPULAR NEWS
Trump Says US Has a Buyer for TikTok
Tuesday, 16 September 2025 23:45 WIB

President Donald Trump said on Tuesday that the US and China have reached a deal on TikTok. The deal will transfer the assets of the ByteDance-owned...

Fed faces key week of decisions with membership, political independence in doubt.
Monday, 15 September 2025 16:50 WIB

The U.S. Federal Reserve holds its latest policy meeting this week with a historic challenge to its leadership pending in the courts and a rushed...

European Stocks End 3-Session Winning Streak
Tuesday, 16 September 2025 14:41 WIB

European stocks edged lower on Tuesday, with both the STOXX 50 and STOXX 600 slipping 0.2%, pausing after three straight sessions of gains. Traders...

S&P 500, Nasdaq 100 Extend Record Highs
Tuesday, 16 September 2025 03:35 WIB

US stocks closed higher on Monday (September 15), driven by gains in technology stocks after President Donald Trump indicated that U.S.-China trade...