From The FOMC To NFP And CPI – Markets Weekly Outlook

The U.S. Federal Reserve delivered a widely anticipated 25‑basis‑point rate cut, lowering the target range from 3.75%–4.00% to 3.50%–3.75%, marking the end of the era of policy rates near 4%. Despite this expected move, markets reacted sharply — the U.S. dollar weakened significantly as investors processed the decision and the Fed’s projections for future policy. In contrast, the Bank of England now has the highest interest rate among OECD countries, with markets pricing in roughly 60 basis points of cuts through 2026. Week in Review: The Federal Open Market Committee (FOMC) decision was the standout story this week. Although the Fed cut rates as expected, the lack of strongly dovish rhetoric and mixed economic projections suggested that future cuts may be limited, keeping markets on edge. The move triggered volatility across asset classes, including equities, bonds, and foreign exchange markets. What’s Ahead: Traders and investors now shift their focus to several key economic data releases next week — namely the U.S. Non‑Farm Payrolls (NFP) report and the Consumer Price Index (CPI) inflation figures. These reports are expected to provide fresh insight into the strength of the labor market and inflation trends, which are critical for assessing the likelihood of future Fed policy adjustments. Additionally, central bank decisions from the Bank of England (BoE), European Central Bank (ECB), and Bank of Japan (BoJ) will add to the market’s volatility and direction for global interest rates. Market Implications: A weaker than expected NFP or persistent inflation data could reinforce expectations for further easing, potentially exerting downward pressure on the dollar and lifting volatility across global markets. Conversely, stronger data may stabilize expectations around U.S. monetary policy and support risk assets. #FOMC #NFP #CPI #MarketOutlook #SlimScan #GrowthStocks #CANSLIM