Fed chairman Jerome Powell, who will step down in May next year after overseeing three more meetings, confirmed that the Fed was leaning towards a pause.
NEWS ANALYSIS

More dissenters could signal increased resistance to future Fed rate cuts

Investors should be positioned for the Fed to continue easing at least once more in 2026, say analysts

Traders work on the floor of the American Stock Exchange (AMEX) at the New York Stock Exchange (NYSE) in New York, US, on Monday, Sept. 29, 2025. Traders are awaiting key labor-market data this week that could provide clues about how fast the Federal Reserve will cut interest rates.
NEWS ANALYSIS

Fed likely to trim rates again this week, but it could be a ‘hawkish’ cut

Futures markets are pricing in a near certainty that it will cut rates by another quarter of a percentage point, bringing them down...

The “Magnificent Seven” mega-cap stocks are still trading at absurd valuations, just like the dotcom players in the late-1990s.
NEWS ANALYSIS

Amid AI frenzy, concerns mount over sustainability of equity rally as valuations continue to soar

The bulls say the AI boom is unlike the dotcom boom, in that the main players this time are extremely profitable giants...

Many Wall Street economists are raising their growth forecasts in 2026, while Fed chief Powell's impression of the US economy remains rosy.
NEWS ANALYSIS

Powell’s warning to investors and lenders: The Fed won’t spoil the markets any longer

With rates in the 3 to 4% range, monetary policy is no longer restrictive

The Fed is expected to cut interest rates this week to a range of between 3.75 per cent and 4 per cent.
NEWS ANALYSIS

As Fed prepares to cut rates this week, all eyes are on outcome of Trump-Xi meeting in Seoul

Prospect of a trade deal between Washington and Beijing has raised hopes of prices of goods coming down ahead of the holiday...

(FILES) Lisa Cook (R) takes the oath of office as she is sworn-in to become a member of the Federal Reserve Board by Federal Reserve Board Chair Jerome Powell, at the Federal Reserve Building in Washington, DC, on May 23, 2022. US Federal Reserve Governor Lisa Cook filed a lawsuit on August 28, 2025, to challenge Donald Trump's move to fire her -- as the president intensified pressure on the independent central bank.  Cook also asked for a temporary restraining order declaring that Trump's attempt to fire her is unlawful and preventing the Fed from removing her for now. A hearing on that motion has been set for August 29. Trump had published a letter on his Truth Social platform on August 25, stating that he was removing Cook from her role and citing accusations of false statements on her mortgage agreements. (Photo by OLIVIER DOULIERY / AFP)
NEWS ANALYSIS

Fed’s independence still in jeopardy even as governor Lisa Cook stays in job for now

Analysts say that an ouster by Trump would undermine trust in an institution that lies at the heart of the trust-based financial...

When the US Federal Reserve cut rates on Wednesday, the Russell 2000 index of small caps – the most closely tied to the fortunes of the US economy – surged by over 2%.
NEWS ANALYSIS

Fed’s rate-cut plans pre-empt a recession, rather than reacting to one

The Federal Reserve’s latest move is a shift from the hold-steady, wait-and-see approach to an aggressive defence of the US labour market

FILE PHOTO: U.S. President Donald Trump and Federal Reserve Chair Jerome Powell speak during a tour of the Federal Reserve Board building, which is currently undergoing renovations, in Washington, D.C., U.S., July 24, 2025. REUTERS/Kent Nishimura/File Photo
NEWS ANALYSIS

Whether it’s one rate cut or more, Fed’s Powell likely to act with caution as inflation stays high

US central bank expected to cut rates by 25 basis points to a range of between 4% and 4.25 % this week

At Jackson Hole, Powell indicated that conditions were at last ripe for a rate cut, ending an eight-month wait for stock- and bond-market bulls.
NEWS ANALYSIS

Powell treads fine line between fighting inflation and pivoting to rate cuts

Even so, he may still not be able to save the US economy from stagflation, the stock market from its recent wobbles, or...

"If we cut rates too soon, maybe we didn’t finish the job with inflation. If we cut too late, we might do unnecessary damage to the labour market,” says the Fed chair.
NEWS ANALYSIS

Dealing with inflation, not cutting rates, remains the Fed chief’s priority for now

Powell pushed back on suggestions that a September rate cut was a foregone conclusion, a statement that caused US stocks to drop