September 20, 2023
United States:
Fed Set to Pause Rate Hikes, But Don’t Count Out Another Increase
The Federal Reserve is expected to pause its interest-rate hikes Wednesday for the second time this year following a slowing in inflation while leaving the door open for another increase as early as November.
The Federal Open Market Committee will keep rates steady at its Sept. 19-20 meeting in a range of 5.25% to 5.5%, a 22-year high. The rate decision and committee forecasts will be released at 2 p.m. in Washington. Chair Jerome Powell will hold a press conference 30 minutes later.
Europe:
European Gas Prices May Be 20% Lower Than Forecast Next Summer
European natural gas prices next summer may be 20% lower than currently estimated thanks to a decline in demand from power plants and ample supplies in storage, according to consultant Wood Mackenzie Ltd.
The region is heading into winter with stockpiles above the seasonal norm, a buffer against any short-term disruptions. There’s also been a drop in gas use for power, with renewables gaining market share, nuclear output rising and economic pressures weighing on industrial and household consumption.
Asia:
Worst Currency in Asia Set to Extend Drop as Oil Gets Costlier
September is shaping up to be a tough month for the Thai baht and all signs point to more losses ahead.
The currency plummeted as low as 36.34 per dollar Wednesday, the weakest since November, and RBC Capital Markets sees it reaching 37 by year-end. Concerns are rising about Thailand’s fiscal health as elevated oil prices boost the nation’s energy import bill and the government’s borrowings increase.
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