In addition, members of the Federal Open Market Committee were not unanimous in their votes, which did not help boost investor confidence either. “We largely view the guidance as mixed, as the increasingly obvious division among the FOMC members’ opinions has increased uncertainty on how much further rates would fall,” writes Phillip Futures analyst Samuel Siew in a Sept 19 commentary.
SINGAPORE (Sept 23): On Sept 18, the US Federal Reserve lowered interest rates for the second time this year by 25 basis points to between 1.75% and 2%. Fed chair Jerome Powell says the US economy remains strong and unemployment low. He adds, however, that “there are risks to this positive outlook”. If the economy weakens, a “more extensive sequence of rate cuts could be appropriate”.
Powell’s “very neutral” stance in his post-meeting comments disappointed the market, which was expecting a stronger easing bias. “Powell’s reluctance to confirm that the Fed continues to have an easing bias was another likely source of disappointment for the market,” writes DBS’s chief economist Taimur Baig in a Sept 19 commentary.
