Tuesday 28/October/2025 – 08:36 PM
Global and Arab Gulf markets are awaiting with interest the results of the US Federal Reserve meeting, scheduled to be issued tomorrow evening, Wednesday, October 29, 2025, amid expectations that the central bank will reduce interest rates for the second time this year, after it reduced them last September by a quarter of a percentage point, in the first step of its kind since December 2024.
Markets are awaiting the results of the US Federal Reserve meeting… and expectations of a new interest rate cut
Although the financial markets have already absorbed the possibilities of this cut, Federal Reserve Chairman Jerome Powell’s statements will remain the focus of investors, as they will have a direct impact on monetary policy expectations during the coming period.
According to Reuters, analysts believe that if Powell’s statements are cautious and indicate continued concerns about slowing growth, this may enhance demand for gold as a safe haven that does not generate returns.
However, if it adopts a more stringent tone that emphasizes the Federal Reserve’s commitment to monitoring inflation and maintaining balanced monetary policy, this may limit gold’s gains and keep prices within a limited regressive range near their recent lowest levels.
The Fed faces an additional challenge, which is disrupting the issuance of key economic data due to the continued government closure for weeks, and this lack of official indicators makes private sector data, such as consumer confidence reports and house price indices, as alternative and decisive indicators to measure the real strength of the US economy when making decisions.
The US dollar index shows relative stability, as it trades near the 99-point level. This stability is partly supported by market expectations that the Federal Reserve will continue its monetary easing approach, which usually affects the green currency, but other factors related to global demand for the dollar as a safe asset play a role in supporting the index.
