NextFin news, Washington, D.C., Tuesday — Matt Orton, chief market strategist at Raymond James Investments, stated on Tuesday that the US Federal Reserve is expected to deliver a 25 basis point rate cut during its Federal Open Market Committee (FOMC) meeting scheduled for this week.
The anticipated rate cut comes amid mixed economic signals, with some weak data failing to sway the Fed toward a larger reduction. Orton's forecast suggests the Fed will opt for a smaller, more cautious easing of monetary policy.
The FOMC meeting is set for September 16-17, 2025, in Washington, D.C., where policymakers will decide on the benchmark interest rate to influence economic growth and inflation.
Market expectations, as indicated by the CME FedWatch Tool, assign a 93% probability to a 0.25 percentage point cut and a 7% chance of a 0.50 percentage point cut. Analysts also anticipate further rate reductions in October and December 2025.
In response to the expected Fed action, global markets have shown cautious optimism. For instance, gold prices have surged near record highs, reflecting investor anticipation of looser US monetary policy and increased demand for safe-haven assets amid economic uncertainty.
Additionally, Asian stock markets rallied following Wall Street's gains, with investors betting on the Fed's rate cut to support economic growth.
Despite market optimism, some analysts caution that the Fed may not lower rates as quickly or as aggressively as the market expects, emphasizing the importance of closely monitoring the Fed's 'Dot plot' projections for future interest rate directions.
Sources: CNBC TV18 (https://www.cnbctv18.com/market/fed-may-stick-to-a-smaller-rate-cut-despite-weak-data-says-raymond-james-strategist-alpha-article-19675518.htm), Rediff MoneyWiz (https://money.rediff.com/news/market/gold-nears-record-high-on-us-fed-rate-cut-hopes/33739720250916), Bloomberg (https://www.bloomberg.com/news/articles/2025-09-15/asian-futures-show-cautious-optimism-ahead-of-fed-markets-wrap)
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