Wealthion Macro Bites 9/18/25

In what Chair Powell termed a “risk management cut,” the Fed cut rates 25bps at its September FOMC meeting and projected additional 25bps cuts in October and December to stem deterioration in labor markets (now the Fed’s primary focus).  Chair Powell said the recent pace of job creation is running below the rate necessary to keep the unemployment rate steady.  “The labor market is weakening.  We don’t need it to soften anymore…There are no risk-free paths.  It’s not incredibly obvious what to do.”  Confidence inspiring? 

In its first cut in 6 months, the Bank of Canada cut rates by 25bps to 2.5% and signaled it would be ready to cut again if risks to the economy increased in coming months.  Governor Tiff Macklem said the damaging effect of tariffs meant considerable uncertainty remained.  Canada’s economy initially held up well to the tariffs but contracted 1.6% in Q2 and more than 100,000 jobs have been lost during the past two months, taking the unemployment rate (outside of Covid) to a 9-year high.

Bloomberg reports the U.S. International Development Finance Corporation is in discussions with Orion Resource Partners to establish a $5 billion joint venture fund to invest in mining of critical minerals such as copper, cobalt and rare earths.

Hong Kong’s Chief Executive John Lee announced plans to boost capacity of the city’s gold storage facilities to more than 2,000 tonnes (over the next three years) and develop a central clearing system for gold in efforts to revive Hong Kong’s status as a global hub for gold trading. 

Reuters reports India’s silver imports are expected to accelerate in coming months due to stronger investment and industrial demand that has already absorbed the local surplus after imports more than doubled to 7,669 tonnes in 2024.  India’s silver imports during the first 8 months of ‘25 more than halved to 2,850 tonnes (from 5,695 tonnes in ‘24), but accelerating demand has boosted consensus estimates to 5,500-6,000 tonnes for the full year.

Euro Stoxx 50 +1.5%, S&P futures +0.85% and Nasdaq futures +1.1%.  10-year Treasury yield -3.3bps (4.055%).  DXY dollar index +0.15, spot gold +0.15% and spot silver +0.5%.