Investors Analyze Central Bank Meetings as Fed Considers Rate Cut in September

Investors are closely analyzing the upcoming meetings of the Federal Reserve, the Bank of Japan, and the Bank of England as monetary policy decisions have become key drivers of the market. While there is some expectation that the Fed will cut rates in September, the market consensus still points to a delay until then.

The Fed is closely monitoring inflation prospects and the labor market, and more evidence of disinflation is needed before implementing a less restrictive monetary policy. The main risk is the November presidential elections, as the possibility of President Trump's return to the White House and a sharp increase in import tariffs could limit the Fed's room for maneuver.

Despite the uncertainty, some experts are optimistic and expect interest rates in the US to fall twice this year and to be cut once a quarter in 2025. The decision on rate cuts will also impact other countries, such as Hong Kong, which is closely following the Fed's monetary policy.

While the Bank of Japan has hiked interest rates, the potential dovish turn of the Federal Reserve could contribute to a rebound in stock markets. Overall, investors are eagerly awaiting the central banks' decisions and communication regarding future rate cuts.