Markets' eyes on Powell's statements: What time will the US Federal Reserve (FED) interest rate decision be announced?
The US Federal Reserve (Fed) is preparing to announce its interest rate decision, eagerly awaited by global markets. Following the recent weakening of the labor market and higher-than-expected inflation data, investors are now focused on the September interest rate meeting. While markets are confident the Fed will cut its policy rate by 25 basis points, Chair Jerome Powell's post-meeting remarks are also critical to the direction of monetary policy.
According to the US Federal Reserve's calendar published at the beginning of the year, the September Fed meeting began on September 16. The interest rate decision will be announced at 9:00 PM on September 17. Fed Chair Powell will make a statement at 9:30 PM.
Markets are focused not only on the interest rate decision but also on Fed Chair Jerome Powell's remarks. Powell's messages will provide clues about the Fed's policy roadmap for the rest of the year.
Analysts stated that the weak employment and relatively strong inflation outlook have largely convinced investors that the Fed will cut interest rates on September 17, that money market pricing suggests a 25 basis point cut in the policy rate at the Fed's meeting next week is almost certain, and that a total of three cuts are expected by the end of the year.
Rabobank Head of Cross-Asset Strategy Christian Lawrence said, "We expect the Fed to cut interest rates by 25 basis points at its September meeting. Inflationary pressures are increasing again, as seen in the released inflation report."
While it is difficult to measure the impact of price inflation resulting from tariffs, Lawrence stated that consumer price inflation is still very high, and that fears of further inflationary pressures persist. Given the lagging nature of labor force data, Lawrence said there is concern that the worst is yet to come and that a significant slowdown in consumption could be seen.
Associate Professor of the Department of Economics Mustafa Batuhan Tufaner said that the Fed is facing a "conundrum" regarding interest rates. He stated that uncertainties regarding the effects of customs tariffs are the most important reason for the Fed's cautious stance, and that unemployment benefits applications have also climbed to high levels. Tufaner noted that US President Donald Trump's interest rate cut pressure is another prominent factor, making the following assessment: "In the context of all these developments, it seems quite possible that the Fed will cut rates by 25 basis points tomorrow. From a markets perspective, cryptocurrencies have been waiting for the interest rate cut process. A possible interest rate cut will positively affect cryptocurrencies. However, geopolitical developments will also have an impact on this process. Alternative investment vehicle investors have been expecting the Fed to enter a monetary easing cycle for a while. However, some of this expectation has already been purchased. Therefore, whether the interest rate decision will be a one-time or cyclical one will be important for cryptocurrencies." He added that macroeconomic factors, especially interest rate decisions, will significantly affect cryptocurrencies in the short term. Tufaner emphasized that the medium-term regulations on stablecoins and tokenized securities to be implemented by the US are of great importance for the future of the cryptocurrency market. Explaining that the transition to digital currencies, for which phase 2 studies are ongoing in Turkey, is also expected, Tufaner said, "As regulations and the use of digital currencies become more widespread, we can say that the inflow of money into crypto assets will accelerate."
ntv
