European Market Open: FOMC statement and SEPs were dovish, Chair Powell’s presser was hawkish; European stocks point higher
9/18/2025
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6:13
- Fed cut rates by 25bps to 4.00-4.25%, as expected, citing a shift in risk balance. Bowman and Waller joined consensus, calling for a 25bps reduction; new Governor Miran dissented, preferring a 50bps cut.
- Nine of the 19 Fed officials see two additional cuts in 2025, two see one cut, and six see no more reductions.
- Fed Chair Powell said he doesn't feel the need to move quickly on rates, and that “you could think of the cut as a risk management cut”, and that decisions will be taken on a meeting-by-meeting approach.
- Markets saw an initial dovish reaction to the FOMC statement followed by a hawkish reversal heading into and during Chair Powell's press conference. Fed rate cut in December still fully priced in.
- APAC stocks traded mixed following the choppy reaction to the FOMC meeting; European equity futures indicate a positive cash market open with Euro Stoxx 50 futures up 0.5%.
- Looking ahead, highlights include US Jobless Claims, New Zealand Trade Balance (Aug), BoE Announcement, Norges Bank Announcement, SARB Announcement, Speakers include ECB’s Lagarde, de Guindos, Nagel & Schnabel, US President Trump & UK PM Starmer press conference, Supply from Spain, France & US, Earnings from FedEx & Lennar.
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