According to BlockBeats, recent moderate inflation reports and a surge in initial unemployment claims have set the stage for a potential 25 basis point rate cut by the Federal Reserve at its September meeting. Concerns over the labor market and prices have led to a drop in U.S. consumer confidence to its lowest level since May, with long-term inflation expectations rising for two consecutive months.
The Federal Reserve is scheduled to hold its policy meeting next week. A 25 basis point rate cut is unlikely to cause significant market fluctuations. If implemented, market participants may quickly shift their focus to U.S. President Donald Trump's news conference and the latest Summary of Economic Projections (SEP), particularly the new "dot plot."
Key events in the upcoming week include:
- Wednesday at 21:45 (UTC+8): Bank of Canada announces its rate decision.
- Thursday at 2:00 (UTC+8): Federal Reserve FOMC releases its rate decision and economic projections.
- Thursday at 2:30 (UTC+8): Federal Reserve Chair Jerome Powell holds a monetary policy news conference.
- Thursday at 19:00 (UTC+8): Bank of England announces its rate decision and meeting minutes.
- Friday (time to be determined): Bank of Japan announces its rate decision.
- Friday at 14:30 (UTC+8): Bank of Japan Governor Kazuo Ueda holds a monetary policy news conference.