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Federal Reserve Chair Powells Remarks Signal Steady Outlook, Markets Anticipate Rate Cuts

2025-10-15 11:55:25 | 浏览 102

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Powell Confirms Steady Economic Outlook with Hints of Future Rate Cuts

At the Federal Reserves latest public remarks on October 14, 2025, Chair Jerome Powell delivered a message of cautious steadiness about the U.S. economic outlook. Powell stated that there has been little change in the economic forecast since the Federal Open Market Committees (FOMC) September meeting, where the Fed had already taken the step of lowering interest rates by a quarter percentage point. Powell emphasised a "meeting-by-meeting" approach to policy decisions, balancing ongoing inflation concerns with signs of weakness in the labor market. While he did not explicitly commit to future interest rate changes, his remarks strongly supported market expectations that a further rate cut is likely at the Feds upcoming October 28-29 meeting.

Fed Nearing the End of Balance Sheet Reduction

Powell also highlighted that the Fed is nearing the end of its multi-year campaign to reduce its massive balance sheet of more than $6 trillion in securities. The central bank may soon pause this balance sheet runoff once it reaches a threshold to ensure "ample" reserves for banks, signaling a potential shift in monetary policy stance.

Gold Prices Surge Amid Fed Rate Cut Hopes and Global Uncertainty

Gold prices are climbing to record highs, fueled by expectations of imminent interest rate cuts from the U.S. Federal Reserve. As Chair Powell indicated little change in the economic outlook but signaled potential rate reductions, markets anticipate easier monetary policy to support growth. Lower interest rates reduce the opportunity cost of holding non-yielding gold and weaken the U.S. dollar, making gold more attractive as a store of value. This dynamic has helped propel gold above $4,100 per ounce, marking significant gains for investors seeking safe-haven assets amid monetary easing.

Beyond Fed policy, several international issues are also driving golds appeal. Renewed U.S.-China trade tensions and geopolitical risks, including instability in the Middle East and political gridlock in the U.S., contribute to uncertainty that benefits gold’s demand. Additionally, concerns over persistent inflation, global debt levels, and shifts in global financial alignments strengthen golds role as a crisis and inflation hedge. These combined factors create a favorable environment for gold trading as gold is positioned to remain a key safe-haven asset in a volatile global landscape.

Upway Global: Trusted Partner Through Market Dynamics

Upway Global, a leader in global precious metals trading since 2010. Anchored in values of compliance, transparency, and investor protection, Upway Global has built a robust ecosystem of over 1.2 million active traders and processed more than 600 million orders, with a monthly trading volume surpassing USD 479 billion in 2025. As a main sponsor, Upway Global proudly supported this milestone, reflecting both our recognition by HKGX and our commitment to Hong Kong’s long-term role as a global hub for precious metals. Highlighted Hong Kong’s “one country, two systems” advantage and its Belt and Road opportunities, reinforcing the city’s position as a super-connector between East and West.




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