investingLive Americas FX news wrap: Fed and Bank of Canada both cut a quarter-point ...Middle East

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FOMC interest rate decision: Federal Reserve cuts by 25 bps, as expectedSept Federal Reserve forecasts: Growth estimates bumped up and 2 more 2025 cuts comingThe full statement from the September FOMC rate decisionPowell: Recent indications show that GDP growth has moderatedPowell Q&A: "I don't think we can say" that policy no longer warrants a restrictive policyPowell: It's really the risks to the labor market that were the focus of today's decisionBank of Canada cuts rates by a quarter-point, as expectedBank of Canada Up September vs July Statements ComparedBank of Canada Governor Macklem: There was a clear consensus to cut by 25 basis pointsUS August housing starts 1.307M vs 1.365M expectedECBs Nagel: A meeting by meeting basis has proven successfulGundlach: Gold will 'almost certainly' close above $4000 before year endTreasury Secretary Scott Bessent once listed two homes as his 'principal residence'Atlanta Fed GDPNow growth estimate remains unchanged at 3.4%

S&P 500 down 0.1%WTI crude oil down 50-cents to $64.04US 10-year yields up 5.4 bps to 4.08%Gold down $32 to $3657USD leads, EUR lags

Ahead of the FOMC decision there were modest signs of profit taking as stock markets edged lower, the US dollar rose and gold dipped. As usual, it was mostly sideways trading until the decision.

A particularly notable headline was him calling it a 'risk management' cut and saying they will be data dependent going forward. He balanced that by saying inflation risks had diminished since April but there were a few minutes of very aggressive US equity selling.

The FX moves were more-notable as USD/JPY was at 146.25 ahead of the FOMC, fell to 145.50 and is now trading at a session high of 147.02.

It usually takes some time for Fed moves to shake out. Current pricing is for 43.7 bps in easing before year end with that December meeting being a real wild-card. Historically though, when the Fed starts cutting, it tends to continue cutting.

This article was written by Adam Button at investinglive.com.

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