In interest rate reducing the Fed – under the microscope the labor market and inflation

Policy shift is expected to make today (17.9.2025) officials of the US Federal Bank (17.9.2025)Fed) to support the unstable US labor market by reducing the interest ratessignaling a change after concerns about the inflation caused by the duties and kept them waiting all year long.

The policy change will take place after internal tensions and pressures by US President Donald Trump, who pressed for a “large interest rate” reduction this week and market fatigue. Political drama has also created uncertainty about who will attend this week’s policy meeting, although the composition of the meeting was likely to be finalized on Monday night (15.9.2025), when the Senate confirmed a new Fed commander and a delayed court order.

In addition to these intrigues, investors will turn to Fed President Jerome Powell and analyze the new financial forecasts to find evidence of the possible interest rates in the coming months.

The forecasts will be published at 2 pm In Washington (21.00 Greece) along with the decision on interest rates, while Powell’s press conference will begin 30 minutes later.

Fed observers expect that different views on employment and inflation will prevent officials from promising an aggressive rate of interest rates.

“Any reduction is more difficult than the previous one, unless the labor market shows signs of continuing deterioration,” said Bank of America’s senior US economist for the US.

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