FOMC Minutes Signal Fed Will Continue to Cut Interest Rates

thecekodok


The focus of the market early this morning was on investors reviewing the published minutes of the September FOMC meeting.


After a clearer policy shift, the report showed that the majority of policymakers are inclined to continue cutting interest rates at the remaining meetings in late 2025.


The market is expecting an additional 25 basis points cut to the latest interest rate at the meeting in late October.


Discussions at the meeting during the day were more focused on concerns about labor market risks and a more stable inflation outlook.


The overall tone was cautious, but showed signals for the Federal Reserve (Fed) to continue easing policy.


Following the publication of the minutes, the US dollar showed a depreciation of its value after several successful sessions of recovery.


Market analysts have warned that the strengthening pattern by the US dollar is likely to be temporary due to the uncertainty that still plagues the United States (US).


The government shutdown situation has dragged on for a second week, with expectations of greater risks hitting the world's largest economy.


An agreement has still not been reached in Congress, prompting warnings from the White House that there will be mass layoffs of federal workers if the government shutdown continues.

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