15-09-2025

Global Markets Bracing for Fed Interest Rate Decision

Date: 15-09-2025
Sources: cnbc.com: 3 | economist.com: 6
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A composite image of global stock market screens and economic indicators

Summary

Global markets are preparing for the US Federal Reserve's interest rate decision, expected to be a 25 basis point cut. The US economy is showing resilience, with the Nasdaq Composite reaching a record high. European markets are mixed, but the European economy is showing signs of recovery. Geopolitical tensions and trade issues continue to impact global markets.

Key Points

  • Global markets are bracing for the US Federal Reserve's interest rate decision, expected to be a 25 basis point cut.
  • The US economy is showing resilience despite gloomy expectations, with the Nasdaq Composite reaching a record high.
  • European markets are mixed ahead of the Fed meeting, with the UK's FTSE expected to open lower and Germany's DAX expected to rise.
  • The European economy is showing signs of recovery, with the IMF forecasting average growth of 0.4% this year for major economies.
  • Geopolitical tensions and trade issues continue to impact global markets, including US-China trade talks and the Ukraine-Russia conflict.

Articles in this Cluster

European markets on Mon Sept. 15: Sroxx 600, FTSE, CAC, DAX

European stocks are expected to have a mixed start to the week ahead of the U.S. Federal Reserve's meeting on Wednesday. The U.K.'s FTSE index is expected to open slightly lower, while Germany's DAX and Italy's FTSE MIB are expected to rise. The week will be busy for the U.K. with U.S. President Donald Trump's state visit and the release of the U.K.'s latest inflation print. U.S. stock futures were little changed on Sunday night after the Nasdaq Composite reached a fresh record high. Investors are bracing for the Federal Reserve's meeting, with a 96.2% certainty that interest rates will be lowered by a quarter percentage point. Meanwhile, Asia-Pacific markets traded mixed overnight as investors monitored talks between the U.S. and China in Madrid.
Entities: European stocks, U.S. Federal Reserve, U.K., FTSE index, GermanyTone: neutralSentiment: neutralIntent: inform

Stock market today: Live updates

The US stock market is experiencing a period of stability as investors await the Federal Reserve's decision on interest rates. The Nasdaq Composite has reached a record high, and the S&P 500 has seen its best weekly performance since early August. The market is pricing in a 96% likelihood of a quarter percentage point interest rate cut by the Fed. Investors are also watching the Senate to see if Stephen Miran will be sworn in as a Fed governor. The Empire State Manufacturing Index is expected to be released on Monday.
Entities: Federal Reserve, Nasdaq Composite, Dow Jones Industrial Average, S&P 500, Mark MalekTone: neutralSentiment: neutralIntent: inform

Treasury yields muted ahead of Federal Reserve's interest rate decision this week

Treasury yields were steady ahead of the Federal Reserve's interest rate decision this week, with the market pricing in a 25 basis point reduction. The yield on the 10-year Treasury was up 1 basis point to 4.068%, while the 2-year and 30-year Treasuries were little changed. The Federal Reserve is expected to cut interest rates, with the CME Group's FedWatch data pointing towards similar cuts in October and December. Investors will also be examining data on import and export prices, as well as retail sales figures ahead of the Fed meeting. Last week's data showed a rise in the U.S. consumer price index to 2.9% on an annual basis in August, with core inflation rising to 3.1%, above the Fed's 2% target.
Entities: Federal Reserve, Treasury, CME Group, U.S., Labor DepartmentTone: neutralSentiment: negativeIntent: inform

America’s economy defies gloomy expectations

The US economy has defied gloomy expectations despite a slowdown in growth and weak employment figures. The Federal Reserve is preparing to cut interest rates as the economy continues to grow, albeit at a slower pace. The article discusses the current state of the US economy, the factors affecting it, and the potential implications of the Federal Reserve's actions.
Entities: Federal Reserve, America, Bureau of Labour Statistics, US economy, Interest ratesTone: neutralSentiment: positiveIntent: inform

Europe has an urgency deficit

The article discusses Europe's 'urgency deficit', arguing that the continent has become complacent in the face of crisis. It highlights various types of deficits, including government spending, demographic, trade, and democratic deficits, which pose significant challenges to European politics and economies. The article also touches on various European issues, such as the crisis in long-term care for the elderly, Italy's mixed messages on Ukraine and Russia, and Poland's warning of 'open conflict' with Russia. The overall tone is critical and analytical, with a negative sentiment towards the current state of European affairs.
Entities: Europe, European Union, China, America, NATOTone: analyticalSentiment: negativeIntent: analyze

Europe’s economy at last shows signs of a recovery

The European economy is showing signs of recovery despite various challenges. The IMF forecasts average growth of 0.4% this year for Germany, France, and Italy, rising to 1% in 2026. However, there are concerns about the French government's stability, President Donald Trump's tariffs, the ongoing war in Ukraine, and increasing Chinese commercial competition. Despite these challenges, the economy is slowly improving.
Entities: Europe, IMF, Germany, France, ItalyTone: neutralSentiment: positiveIntent: inform

Finance & economics | Latest news and analysis from The Economist

The Economist's finance and economics section discusses various current economic topics, including the US economy's resilience despite gloomy expectations, the impact of the Federal Reserve's interest rate decisions, and the global economy's response to trade tensions and technological advancements. Other topics include the recovery of Europe's economy, China's thriving trade despite US attacks, and the potential risks associated with AI and commodity investments.
Entities: Federal Reserve, America, Donald Trump, Europe, ChinaTone: analyticalSentiment: neutralIntent: inform

Italy’s coalition sends mixed messages on Ukraine and Russia

The Italian government is sending mixed signals on Ukraine and Russia due to the ambivalence of its voters. Deputy Prime Minister Matteo Salvini has been a long-time admirer of Russian President Vladimir Putin, but has had to tone down his support since joining the pro-Ukrainian coalition government led by Giorgia Meloni in 2022. Salvini's past actions, such as wearing a T-shirt with Putin's face at a European Parliament meeting, have raised eyebrows. The government's mixed stance reflects the divided views of Italian voters on the issue.
Entities: Matteo Salvini, Vladimir Putin, Giorgia Meloni, Italy, UkraineTone: neutralSentiment: neutralIntent: inform

Why American bondholders are jumpy about inflation

The article discusses why American bondholders are becoming increasingly anxious about inflation as the Federal Reserve prepares to cut interest rates. The Fed is expected to lower rates at its next meeting on September 16th and 17th, with traders debating whether the cut will be 0.25 or 0.5 percentage points. The decision comes as the economy shows signs of resilience despite gloomy expectations. The article highlights the influence of Donald Trump on the Fed's decision-making process, as he has been pressuring Jerome Powell to lower rates.
Entities: Federal Reserve, Donald Trump, Jerome Powell, Jackson Hole, White HouseTone: analyticalSentiment: neutralIntent: inform