The Fed Will Likely Make Excuses Rather Than Rate Cuts This Week

This week is all about the Fed. The Fed governors hinted that Friday’s healthy jobs report makes a rate cut this week less likely.

Federal Reserve Chair Jerome Powell holds a press conference after the Monetary Policy Committee meeting, at the Federal Reserve in Washington on March 19, 2025. Roberto Schmidt/AFP via Getty Images

Commentary

The Fed is meeting and will make their policy pronouncement this week. In the meantime, European Central Bank (ECB) officials are hinting that more ECB interest rate cuts are coming, and the Bank of Canada should also be cutting key interest rates at its next meeting. This will put more pressure on the Fed to cut rates. The wild card in the global interest rate collapse is China, since currency devaluation rumors persist there, as China’s rates have collapsed and can’t go much lower.