Finance
Morning Bid: Fed opens September meeting with independence under threat
Published by Global Banking and Finance Review
Posted on September 16, 2025
3 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 16, 2025
3 min readLast updated: January 21, 2026
The Federal Reserve begins its September meeting amid pressure from the White House, with an interest rate cut expected. Global markets are in a wait-and-see mode.
A look at the day ahead in European and global markets from Rae Wee
The U.S. Federal Reserve kicks off its two-day policy meeting later on Tuesday where an interest rate cut is all but priced in, at a time when the central bank faces unprecedented pressure from the White House over the direction of monetary policy.
The U.S. Senate on Monday narrowly confirmed Stephen Miran to the Fed's Board of Governors, handing President Donald Trump's top economic adviser one of 12 interest rate-setting votes on the eve of the policy meeting. Miran will join the meeting pending completion of paperwork and his swearing-in.
Also able to attend the meeting - absent a last-minute Supreme Court intervention - is Fed Governor Lisa Cook after a U.S. appeals court on Monday said Trump could not fire her.
Markets hardly reacted to the news yet the developments were a reminder of how Trump is putting his stamp on the bank and reshaping its standing in the eyes of the public and peer institutions, and influencing policy and other decisions.
Ahead of Wednesday's Fed outcome, markets were largely in wait-and-see mode, with stocks scaling fresh highs in Asia while the U.S. dollar struggled to make headway.
Markets have fully priced in a 25 basis-point cut with some pricing in a slim chance of a 50 bp move, against a backdrop of Trump calling for the Fed to deliver a "bigger" cut.
The Fed aside, investors will also have UK labour market data and U.S. retail sales figures to chew on later on Tuesday.
Still-elevated wage growth in Britain continues to be a source of concern for the Bank of England, even as the broader labour market shows signs of cooling.
Overall average weekly earnings, excluding bonuses, likely grew 4.8% over May-July, versus 5.0% for April-June, while the unemployment rate is forecast to have stayed steady at 4.7%.
The BoE is widely expected to keep its benchmark interest rate on hold later this week as the rate of inflation creeps up, but is likely to cut once next quarter and again early next year, showed a Reuters poll of economists.
Key developments that could influence markets on Tuesday:
* UK labour market data (July) * U.S. retail sales (August) * Fed's two-day monetary policy meeting begins(By Rae Wee; Editing by Christopher Cushing)
The Federal Reserve's two-day policy meeting is primarily focused on the potential for an interest rate cut amidst significant pressure from the Trump administration.
The U.S. Senate confirmed Stephen Miran to the Fed's Board of Governors, giving President Trump's adviser a vote on interest rates, while Fed Governor Lisa Cook was allowed to attend the meeting after a court ruling.
Markets are largely in a wait-and-see mode, with stocks reaching new highs in Asia, while the U.S. dollar is struggling to gain traction as investors anticipate a 25 basis-point cut.
Investors are also looking forward to UK labor market data and U.S. retail sales figures, which are expected to provide further insights into economic conditions.
The Bank of England is expected to maintain its benchmark interest rate this week, but it may cut rates in the next quarter and again early next year as inflation rises.
Explore more articles in the Finance category
