Hong Kong Cuts Base Rate as HKMA Follows U.S. Federal Reserve Move 
RBA Signals Possible Rate Implications as Inflation Proves More Persistent 
New RBNZ Governor Anna Breman Aims to Restore Stability After Tumultuous Years 
South Korea Warns Weak Won Could Push Inflation Higher in 2025 
Canada Stocks Steady as Markets Await Fed and BoC Decisions 
Bank of Korea Downplays Liquidity’s Role in Weak Won and Housing Price Surge 
ECB Signals Steady Rates Ahead as Policymakers Warn of Inflation Risks 
No Emergency Fed Meeting Today
In contrast to speculation, the Federal Reserve is not holding an emergency meeting today, April 7, 2025. Instead, the Board of Governors is conducting a regularly scheduled closed meeting at 11:30 AM Eastern Time to discuss advance and discount rates imposed by Federal Reserve Banks. The meeting is according to the normal Fed schedule despite volatile markets and President Trump's tariff revelations.
Market Expects Aggressive Rate Cuts
The market is pricing in hopes for more profound monetary policy loosening, as investors are anticipating five interest-rate reductions by the end of 2025. The possibility of an emergency rate reduction in a week also has a 40% chance. This measures strong market expectation of a softer Federal Reserve stance in light of economic uncertainty.
Powell Signals Cautious Approach
Despite market expectations of sharp rate reductions, Federal Reserve Chairman Jerome Powell signaled preference to alter rates only when absolutely necessary. The next Federal Open Market Committee (FOMC) meeting, under which potential policy changes are set to be discussed, is on May 6-7. This also suggests a relatively more conservative and data-driven stance by the Fed, which damps expectations of immediate and immediate policy response.
