The global economic arena is witnessing a state of anticipation amid expectations of a new move by the U.S. Federal Reserve to cut interest rates under pressure from President Donald Trump, while data from China reveals the slowest industrial growth in 11 months amid mounting internal and external challenges.

Trump Expects Major Rate Cut Despite Market Bets on Modest Move

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U.S. President Donald Trump said he expects the Federal Reserve to deliver a “significant” interest rate cut at its meeting this week, even though markets are pricing in a reduction of only 25 basis points.

Speaking to reporters on Sunday after returning to Washington, Trump said, “I think this is the perfect time for a big rate cut,” according to Bloomberg.

The Fed is scheduled to begin its meeting on Tuesday and conclude on Wednesday, when it may announce the first rate reduction in nine months, amid Trump’s continued pressure since returning to the White House.

Recent economic data have reinforced expectations for an easing move, pointing to a cooling labor market while inflation remains above the 2% target.

China Records Slowest Industrial Output Growth in 11 Months

Data released Monday morning by China’s National Bureau of Statistics showed that industrial production growth slowed in August to its weakest level in nearly a year, missing market expectations.

Key Economic Indicators:

Industrial production rose 5.2% year-on-year in August, below forecasts of 5.7% and down from July’s 5.7%.
Retail sales increased 3.4% year-on-year, compared to 3.7% in July and expectations of 3.8%.
The unemployment rate climbed to 5.3% in August, exceeding July’s 5.2% and forecasts for no change.

These figures highlight persistent pressure on the world’s second-largest economy as domestic and external demand weaken, adding to the challenges facing policymakers in Beijing.

As investors await the Fed’s decision, markets continue to closely watch Chinese economic indicators. The overall picture points to ongoing strain on the world’s two largest economies, which could weigh on the global economic balance.

Daily News Report – September 15

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