After three interest rate cuts in a row, the US Federal Reserve is expected to take a breather on Wednesday and signal it will remain on pause until the data changes, despite pressure to cut from President Donald Trump.
The Indonesia stock market has climbed higher in six straight sessions, advancing more than 280 points or 3.8 percent along the way.
Gold prices dipped on Monday, pressured by a firmer U.S. dollar, while investors focussed on the Federal Reserve's first meeting of 2025.
The Indonesia stock market has moved higher in two straight sessions, improving more than 150 points or 2.1 percent along the way.
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The central bank’s decision to pause at its first meeting of 2025 followed a series of cuts that began in September to account for progress already made on getting inflation down. Over the course of three meetings, the Fed lowered rates by a full percentage point to a range of 4.25 percent to 4.5 percent, which was maintained on Wednesday.
After lowering interest rates by a full percentage point last year, officials at the central bank are weighing a solid economy and rising inflation risks.
The new voters on the Federal Reserve's policy committee in 2025 are an official seen as one of the system's most dovish, as well as a centrist and two new faces who could bring a more stringent anti-inflation perspective.
After a week of focus on U.S. politics following President Trump’s inauguration, focus switches back to monetary policy, with an interest-rate decision due by the Fed as well as the ECB.
President Trump has said he will "demand" lower interest rates, raising questions about his ability to influence the Federal Reserve.
The Federal Reserve is widely expected leave its benchmark interest rate steady this week, but economists and market participants will be keeping a close eye on what Fed officials say about the state of the economy and the outlook for rates.
The U.S. Federal Reserve is expected to keep interest rates on hold, despite demands by President Donald Trump to continue lowering borrowing costs.