(Source: CCTV-2 Financial Channel "CCTV Financial Review" 2025-09-12)
The Federal Reserve’s sixth interest rate meeting this year will be held on September 16th and 17th local time. Affected by the weak labor market, the market generally expected an interest rate cut in September to be a high probability event. However, the latest data shows that the U.S. CPI increased by 2.9% year-on-year in August, higher than the 2.7% in July. Faced with a resurgence of inflation, how will the Fed choose? At the same time, U.S. President Trump continues to try to influence the selection of governors of the Federal Reserve. How will this disrupt the subsequent direction of monetary policy? Focusing on these hot topics, the "CCTV Financial Review" column of CCTV-2 Financial Channel invited Jiang Ping, a professor of finance at the w88 casino of International Economics and w88 of w88 casino, to give a professional interpretation.
Professor Jiang Ping believes that the current U.S. economic environment is obviously "confusing", mainly due to the intensifying contradictions in data signals. The Federal Reserve is facing the challenge of "stagflation" and needs to find a balance between suppressing inflation and maintaining employment. If interest rates are maintained high or interest rate cuts are delayed to curb inflation, it may lead to an increase in unemployment and economic decline; if interest rates are cut quickly to stimulate employment, it may over-stimulate the economy and push up inflation. She specifically mentioned that the Federal Reserve adjusted its monetary policy framework in 2025, abandoning the "flexible average inflation targeting system" and switching to a more balanced "flexible inflation targeting system", giving higher priority to inflation, but the unexpected weakness in the job market complicated decision-making.
In response to Trump’s criticism of the Federal Reserve, Professor Jiang Ping pointed out that many of his remarks “come first” and are not just directed at the Federal Reserve. Technology giants such as Apple are also under pressure from him. For example, they were asked to promise to increase investment in the United States. Trump blames the economic problems on the Federal Reserve's failure to cut interest rates, but this view is contrary to the views of most economists and analysts. Interest rate cuts are not a panacea and require comprehensive consideration of multiple goals such as inflation. Professor Jiang Ping emphasized that as an independent central bank system, the Federal Reserve's monetary policy should maintain independence and should not be influenced by pressure from government officials or short-term goals, but should be based on the dual mission of balancing inflation and employment. Although the sharp reduction in employment data is a routine revision, the magnitude is larger than expected and may indicate that the economy is cooling.
Professor Jiang Ping further emphasized that if the Federal Reserve loses its independence, it may trigger a series of chain reactions with very serious consequences: first, it will weaken the independence of monetary policy and shake the foundation of financial market stability; second, it will impact the global financial system, affect the credibility of the U.S. dollar, and even trigger a crisis of confidence and the risk of selling U.S. dollar bonds; ultimately, it will undermine the stability of the U.S. system, dismantle its fundamental checks and balances mechanism, and lead to the collapse of long-term confidence. She reiterated that the stability of monetary policy and the predictability of interest rates and inflation are crucial to corporate investment and financing and consumer decision-making, and the Fed must adhere to an independent decision-making mechanism based on data.
In terms of global impact, Professor Jiang Ping said that if the Federal Reserve starts a new round of interest rate cuts, it will affect the global economy in multiple ways: first, it will ease the pressure of capital outflows from emerging markets and stabilize asset prices and currency exchange rates; second, the narrowing of interest rate differentials between Europe and the United States will benefit the euro and reduce the pressure of capital outflows; third, bulk commodities (such as crude oil) priced in US dollars may receive a boost. However, she also reminded that if the interest rate cut is seen as the result of the damage to the central bank's independence under political pressure, it may bring new uncertainties and trigger a chain reaction, and it needs to be paid close attention to.
Attachment: video news link
https://tv.cctv.com/2025/09/12/VIDEGg26iOu5Aq5z2Mr2uwNs250912.shtml?spm=C52448022284.Pzpe9Ja39w40.0.0
