On September 17, the U.S. Federal Open Market Committee reduced interest rates by 0.25 percentage point, signaling the beginning of a new monetary easing cycle—just as analysts had anticipated. However, Vietnam’s stock market responded in an unusually subdued manner. Reaction to interest rate reduction On September 17, the U.S. Federal Open Market Committee (FOMC) approved a 0.25 percentage point rate cut, lowering the federal funds rate to a target range of 4–4.25%. The decision passed with eleven votes in favor and one dissenting vote from newly appointed Governor Stephen Miran, who advocated for a more aggressive reduction. The outcome closely aligned with market expectations. According to the latest dot plot, nine of the 19 FOMC members foresee two additional rate cuts by year-end, potentially bringing the range down to 3.50–3.75%. However, consensus suggests only one further cut in 2026, reducing rates to 3.25–3.50%—a level still above market projections. Data from the first half of 2025 indicates a slowdown in the U.S. economy, marked by weaker job creation and a rising unemployment rate of 4.3%, alongside persistently high inflation. This trend has unfolded amid the tariff policies implemented by President Donald Trump, which have disrupted supply chains and kept commodity prices […]