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Investment Event

Fed cuts on weak employment
18 September 2025
    Articles
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    Key takeaways

    • The Fed cut by 25bp at its September meeting with its projections hinting at a further 50bp of easing by end-2025
    • FOMC members have become more concerned about downside risks to employment, which warrant the policy rate being taken to a more neutral level
    • Fed cuts are an important element supporting risk assets, a further broadening out of market returns, and a softening of the USD, with emerging markets benefitting most
    • Nonetheless, we need to remain aware of the economic risks. Macro signals point to “stagflation lite” - weaker growth and still-warm inflation.

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