The US Federal Reserve is expected to cut interest rates for the first time since President Trump’s reelection, affecting half of the world’s most-traded currencies. Central banks in Canada, the United States, England, and Japan will adjust rates or signal their intentions for the final quarter of the year, with a US rate cut anticipated.

President Trump’s calls for lower borrowing costs clash with Fed Chair Powell’s concerns about inflation. Signs of a weakening labor market may prompt a quarter-point rate cut by the Federal Reserve. Economists expect the FOMC to cut rates by 25 basis points to appease market expectations and White House demands.

In Canada and Norway, similar rate adjustments are expected, while the Bank of England may keep rates steady after a recent split in officials’ opinions. The Bank of Japan remains on a path towards tightening but has not indicated an imminent rate hike. Other major economies like Indonesia, Brazil, and South Africa are forecasted to maintain their current rates.

In Asia, China will release a deluge of economic data, including retail sales, industrial output, and investment figures. Japan will report its trade balance, while Singapore will share non-oil shipments data. Bank Indonesia is expected to hold rates amid protests and political changes. New Zealand and Australia will release GDP and job reports, influencing their central banks’ outlooks.

In Europe, the UK inflation data is set to remain at 3.8%, with the Bank of England expected to keep rates steady. Norway may face a close call on a rate cut due to high inflation. The European Central Bank will hold a conference, and trade numbers, industrial production, and inflation readings will be crucial. Several euro-area borrowers will undergo credit assessments.

In Latin America, Brazil’s GDP-proxy data is expected to show a slowdown in economic activity. Colombia and Peru will report retail sales, manufacturing, industrial production, and GDP-proxy data. Banco Central do Brasil is likely to maintain its borrowing costs at a 19-year high. Argentina’s economic program faces challenges after poor election results in Buenos Aires.

Read more at Yahoo Finance: Global 36-Hour Interest-Rate Spree Heralds First US Cut of 2025