UOB(US:UOVEY) Xin Hua Cai Jing·2025-09-18 13:55Core Viewpoint - The U.S. Federal Open Market Committee (FOMC) decided to lower the federal funds rate target range by 25 basis points to 4.00%-4.25%, marking the first rate cut in 2025 after maintaining rates steady for six consecutive meetings [1] Group 1: Rate Decision - The rate decision was passed with a vote of 11 in favor and 1 against, with Stephen Miran opposing the decision, advocating for a larger cut of 50 basis points [1] - The adjustment in the assessment of the labor market was identified as a key reason for the rate cut, with recent employment growth slowing and a slight increase in the unemployment rate [1] Group 2: Future Outlook - The updated "dot plot" indicates that policymakers expect two more rate cuts by the end of 2025, with predictions of 25 basis point cuts in October and December meetings [1] - The upper limit of the federal funds rate is projected to reach 3.75% following these anticipated cuts [1] Group 3: Powell's Stance - Despite the rate cut, Chairman Powell's statements leaned towards a "hawkish" tone, describing the cut as a "risk management" measure rather than signaling the start of a new rate-cutting cycle [2] - Future monetary policy decisions will be based on subsequent economic data and will not follow a predetermined path [2]