After holding regular by most of 2025, the Fed signalled a possible fee reduce within the coming months. Right here’s how this may impression the Singaporean investor.
When the US Federal Reserve makes a transfer, the world takes discover. That’s as a result of US rates of interest—the Fed funds fee—affect every thing from the price of mortgages in Singapore to the efficiency of Asian inventory markets. After holding regular by most of 2025, the Fed signalled a shift in September when Chair Jerome Powell advised that fee cuts might be on the desk, particularly if labour market knowledge continues to melt. This follows a number of rounds of cuts in late 2024, which buoyed markets however did little to revive momentum in early 2025. Now, all eyes are on the August US jobs report due 5 September 2025. A weak July payrolls print—simply 73,000 jobs added—already set the stage for relieving. Economists anticipate one other modest achieve of…