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Fed Starts Its Policy Easing with 25bps Cut, What Now?

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Algo Research Team

Market | Sep 17, 2025 | Views: 588

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Key Summary:

  • Weakening US labor market outlook pushes for policy easing
  • Expect two more 25bps cuts in 2025, one each in 2026/27
  • Global sentiment is priced-in, lacking catalysts in IHSG

After keeping interest rates on hold for the past 9 months, the US Federal Reserve finally decided to reduce the federal funds rate (FFR) by 25bps to a 4–4.25% range this week.


This decision was largely anticipated by market participants as the US central bank has been signaling its intent to resume easing since the Jackson Hole conference last month.

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