Macro outlook next week: Fed rate cuts may slow down, beware of PCE blowing up all expectations
Source: PANews
Time: 2025-09-20 23:12:39
PANews September 20th news: Wall Street ended the highly anticipated Fed Week, with U.S. stocks hitting record highs as the prospect of further interest rate cuts boosted corporate earnings prospects and risk appetite sentiment rose. Despite a temporary respite calls after the S&P 500 rebounded nearly $15 trillion from its April low, bullish sentiment still prevailed. Here are the key points that the market will focus on in the new week:
On Monday at 21:45, FOMC Permanent Voting Committee and New York Fed Chairman Williams spoke on monetary policy and economic prospects;
At 22:00 on Monday, 2025 FOMC voter and St. Louis Fed Chairman Mousalem delivered a speech on the US economic outlook and monetary policy;
At 00:00 on Tuesday, FOMC Voting Committee and Cleveland Fed Chairman Hamak delivered a speech on the US economy in 2026; FOMC Voting Committee and Richmond Fed Chairman Barkin delivered a speech on the economic situation in 2027;
At 22:00 on Tuesday, 2027 FOMC voter and Atlanta Fed Chairman Bostic delivered a speech on the economic outlook;
On Thursday, at 04:10, the 2027 FOMC voter and San Francisco Fed Chairman Daley delivered a speech;
At 20:20 Thursday, the 2025 FOMC voter and Chicago Fed Chairman Goulsby delivered a speech;
On Thursday at 21:00, FOMC Permanent Voting Committee and New York Fed Chairman Williams delivered a welcome speech at the fourth annual meeting on the international role of the dollar;
On Friday at 01:00, Federal Reserve Director Barr spoke on the bank's stress test;
On Friday at 03:30, the 2027 FOMC voter and San Francisco Fed Chairman Daley delivered a speech;
At 21:00 on Friday, 2027 FOMC voter and Richmond Fed Chairman Barkin delivered a speech;
Fed Director Bowman delivered a speech at 22:00 on Friday.
Although the Fed implemented a 25-bp rate cut as expected, the latest dot chart predicts that only two more interest rates will be cut this year, marking a slowdown in easing. This is in stark contrast to the aggressive loose path that the market had previously expected. Marc Chandler of Bannockburn Forex noted that the market had been pricing the more dovish Fed, and the relatively tight stance forced the market to readjust its strategy.