Archive · 25 Sep 2025
Stocks Fall as Economic Data Dampens Rate Cut Expectations
The US economy grew more than expected, which made investors think the Federal Reserve might not cut interest rates as quickly.
This caused stock prices to go down and the US dollar to become stronger.
The yield on government bonds also went up.
The Swiss National Bank decided to keep its interest rates the same.
The Federal Reserve officials have different views on whether to ease the policy.
Global stocks fell, while bond yields rose.
US GDP growth was revised upward to 3.8%.
The dollar gained against several currencies.
Traders are less certain the Federal Reserve will cut interest rates soon.
The Swiss National Bank kept interest rates at zero.
- Who
- Federal Reserve officials, Economists, Labor Department
- What
- Stocks fell while the dollar rose following stronger-than-expected economic data.
- When
- Thursday
- Where
- US, global markets, Switzerland
- Why
- Stronger economic data made investors less optimistic about rate cuts.
Supporters of Rate Cuts
Those favoring Caution
Interest Rate Policy
Supporters of Rate Cuts
Some officials support rate cuts due to cooling labor market.
Those favoring Caution
Others are cautious, citing inflation concerns.
- US GDP Growth
- Revised to 3.8% annualized rate
- Unemployment Claims
- Fell to 218,000
- Dollar Index
- Rose 0.61% to 98.43
- Dollar vs. Yen
- Strengthened 0.5% to 149.65
- Dollar vs. Euro
- Euro down 0.58% at $1.1669
- 10-year Treasury Yield
- Rose 4 basis points to 4.187%
- Swiss National Bank Rate
- Kept key interest rates at zero
