Impact on each asset
USD ▼US dollarHeadwind
XAU ▲GoldTailwind
US ▲US stocksTailwind
SET ■Thai stocksLimited
BTC ■CryptoLimited
Summary
Federal Reserve Bank of New York President John Williams told Bloomberg that one additional rate increase may still be appropriate this year, but he does not expect further hikes in 2027. Bond yields fell following the remarks.
Why it moves markets
Dovish forward guidance from a senior Fed official tempers rate-hike expectations and strengthens the case for an easing cycle ahead. This supports lower long-term yields and assets that benefit from a lower-rate environment, triggering a bond rally.
Similar past event: The Fed's first cut: 0.50% (18 Sep 2024)
The first rate cut is usually already priced in; what happens next depends on the following economic data. Don't assume the dollar will weaken for long just because the Fed cut once. See details
The first rate cut is usually already priced in; what happens next depends on the following economic data. Don't assume the dollar will weaken for long just because the Fed cut once. See details
Deeper view and what to watch
Risk lies in this week's CPI and PPI releases. If inflation reads hotter than expected, Williams and peers may need to take a harder line. Bond markets are watching Wednesday's CPI and Thursday's PPI for confirmation of the Fed's disinflationary trajectory.
For education only, not investment advice. Prices and figures change constantly, so check the sources before making decisions.