Global Markets React to Fed Rate Cut Decision

Asian markets reacted mixedly to the Federal Reserve's expected rate cut on Wednesday. Japan's Nikkei 225 hit a fresh record, driven by gains in real estate and technology sectors. South Korea's Kospi rose, while Australia's ASX/S&P 200 fell. The Bank of Japan is set to keep policy rates steady in its upcoming meeting. Asian chip stocks surged after a report that China banned Nvidia's AI chips. US stock futures rose slightly as investors digested the Fed's rate cut decision.

The US Federal Reserve cut interest rates by 25 basis points, bringing the overnight funds rate range between 4% and 4.25%. The decision was near-unanimous, with only newly appointed governor Stephen Miran dissenting. The rate cut was fully priced in by markets, and the move did little to cheer US stocks, which traded mixed. The S&P 500 and Nasdaq Composite fell, while the Dow Jones Industrial Average rose. The Fed's dot plot showed disparity in rate projections for next year, indicating uncertainty over the economic outlook. Meanwhile, China reportedly banned Nvidia chips, and Meta unveiled its first consumer-ready smart glasses.

The U.S. Federal Reserve cut interest rates by 25 basis points, bringing the overnight funds rate range between 4% and 4.25%, in a near-unanimous decision. The move was seen as a 'risk management' cut by Chair Jerome Powell, but failed to cheer markets, with the S&P 500 and Nasdaq Composite falling, while the Dow Jones Industrial Average rose. The decision was in line with market expectations, but traders were looking for more aggressive cuts. Other news included China's reported ban on Nvidia chips and Trump's state visit to the UK, which was met with protests.

European stocks are expected to open higher on Thursday as traders assess the US Federal Reserve's 25 basis point rate cut on Wednesday. The Bank of England is set to announce its interest rate decision, expected to keep rates on hold at 4%. The Fed's decision was seen as less dovish than expected, with Chair Jerome Powell describing the cut as 'risk management.' Asia-Pacific markets traded mixed overnight, with Japan's Nikkei 225 rising to a fresh record. European indices are expected to open higher, with the UK's FTSE, Germany's DAX, and France's CAC 40 all projected to gain.

The Federal Reserve cut interest rates by a quarter of a percentage point to 4-4.25% on September 17th, amidst controversy and political interference. Governor Lisa Cook's attendance was secured by a court order blocking President Donald Trump's attempt to sack her, while Governor Stephen Miran was confirmed for a short stint from the White House. Miran dissented in favor of a half-point rate cut and suggested three such moves by the end of the year. The article argues that America's monetary policy risks becoming too loose and that jobs growth is weak due to low migration rather than a cold economy.

The article discusses the current state of British politics, arguing that the centre is cracking under the pressure of electoral volatility. The Labour government, led by Sir Keir Starmer, is facing significant challenges, including low approval ratings and a recent cabinet reshuffle prompted by the resignation of Deputy Prime Minister Angela Rayner over unpaid taxes. The article suggests that the traditional parties of government are under siege and that the political centre is struggling to maintain its ground.

The US Federal Reserve's 0.25 percentage point interest rate cut has led analysts to expect moderate easing from China's central bank, the People's Bank of China (PBOC). The PBOC set the yuan's midpoint rate at 7.1085 per US dollar, weaker than the previous day's rate. Analysts forecast a smaller rate cut from the PBOC compared to the Fed, narrowing the interest rate gap and easing capital outflow pressures on the yuan. This is expected to lend support to the yuan. Standard Chartered Bank's chief Greater China economist, Ding Shuang, predicts a 0.1 percentage point cut from the PBOC in the fourth quarter.