International News 11 September 2025
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Fed Seen Extending Rate Cuts as U.S. Labor Market Weakens
The Federal Reserve is expected to proceed with another short-term rate cut next week and continue easing through year-end, as fresh labor data signal a cooling job market. A preliminary annual revision from the U.S. Bureau of Labor Statistics showed the economy created 911,000 fewer jobs in the 12 months through March than previously estimated, suggesting monthly payroll gains averaged less than half of the reported 147,000. Combined with recent employment reports showing slowing growth, economists say the data give the Fed additional justification to ease policy. Traders now largely expect a 25-basis-point cut at the September 16–17 meeting, followed by another in October. Market participants also see a third cut in December as more likely than a pause, though bets on additional easing into early 2026 have moderated. The probability of a January rate cut has dropped to under 40%, down from nearly even odds before the revisions. Fed Chair Jerome Powell has acknowledged that rising risks to the labor market may require careful policy loosening, but officials remain cautious given inflation remains above the 2% target and upside risks from President Donald Trump’s tariff hikes persist. Two upcoming U.S. inflation reports due later this week will be critical in shaping the Fed’s near-term path.
Thailand Central Bank Moves to Stabilize Strong Baht
The Bank of Thailand (BOT) has stepped in to stabilize the baht after the currency appreciated about 7% year-to-date, making it the strongest performer among regional peers. Pimpan Charoenkwan, BOT’s Assistant Governor for Financial Markets, said the central bank is closely monitoring volatility and will act to limit its impact on businesses. The baht’s rally has been fueled by a weaker U.S. dollar—driven by expectations of Federal Reserve rate cuts—and sustained gains in global gold prices. BOT is also exploring measures to mitigate the impact of gold price fluctuations on the exchange rate. On Monday, the baht strengthened to 31.81 per U.S. dollar, its highest level in over four years, surpassing the 32.00 mark last seen in mid-2021. Analysts, including Krungthai Bank’s Sanguan Jungsakul, described the surge as “sharp and significant,” citing gold’s continued rally, prospects of Fed easing in September amid U.S. economic slowdown, and improved political clarity in Thailand following the formation of a new government. BOT urged the private sector to hedge foreign exchange risks to better withstand volatility.
Trump Urges EU to Impose 100% Tariffs on China and India Over Russian Oil
On Tuesday (Sept 9, 2025), U.S. President Donald Trump pressed European Union officials to impose tariffs of up to 100% on China and India, as part of his strategy to pressure Russian President Vladimir Putin over the war in Ukraine. According to U.S. and EU officials cited by Reuters, Trump conveyed the demand during a conference call with EU sanctions envoy David O’Sullivan and other EU representatives visiting Washington for sanctions coordination talks. Both China and India are among the largest buyers of Russian oil, playing a crucial role in sustaining Moscow’s economy amid its ongoing invasion of Ukraine. The request marks a shift for the EU, which has favored sanctions over tariffs to isolate Russia. Trump indicated that the U.S. would impose similar measures if the EU joined in, effectively pushing for a coordinated front. While he has already raised tariffs on India by 25 percentage points earlier this summer over its ties to Moscow, Trump has not yet acted on heavier measures. At the same time, he criticized Europe’s lingering dependence on Russian energy, which still accounted for nearly 19% of EU gas imports last year. Later on Tuesday, Trump softened his stance on India, hinting at potential trade expansion and stating on social media that the U.S. and India were working to resolve trade barriers, while expressing eagerness to speak with Prime Minister Narendra Modi.