The spotlight for global markets in the coming week will be on the US Federal Reserve’s next interest rate call, with several major corporate updates also on the agenda.
The Fed is widely tipped to deliver its first rate cut of the year on Wednesday, 17 September. A 0.25% reduction is expected, lowering the range to 4%–4.25% from 4.25%–4.5%. Across the Atlantic, the Bank of England is set to announce its own decision on Thursday, with most analysts predicting no change after August’s rate cut.
Fresh US economic data has added to the anticipation. Jobless claims climbed to 263,000 last week – the highest level in nearly four years – while inflation remained sticky. The consumer price index showed annual inflation rising to 2.9% in August from 2.7% in July, with monthly growth of 0.4%, above expectations.
The figures highlight the Fed’s challenge of balancing rising prices against signs of a cooling labour market. Interactive Investor’s Victoria Scholar suggested that while a larger 0.5% cut cannot be ruled out, the stronger inflation reading makes it unlikely. She noted Fed Chair Jerome Powell has acknowledged the risk of inflation staying high while employment weakens.
In the UK, inflation data due on Wednesday will be closely watched ahead of the BoE’s announcement. July’s CPI unexpectedly jumped to 3.8%, its highest in 18 months, driven by food and transport costs. Economists at Capital Economics now expect August inflation to reach 3.9%, above the BoE’s forecast of 3.8%, with September potentially rising further to 4.2%.
Capital’s Paul Dales believes inflation could keep the Bank cautious in the near term, though a weak labour market should eventually help bring price growth back down. His forecast points to rate cuts resuming in February 2026, with interest rates potentially falling to 3% over the year – more than current market expectations.
It’s also a busy week for corporate earnings. FedEx will release first-quarter results on Thursday. The company has faced downgrades from Bank of America amid concerns over new import tariffs and pressure on volumes. Analysts cut FedEx’s EPS forecast for the quarter to $3.56 from $3.80, though the group still expects flat to modest revenue growth.
FedEx’s shares are down almost 19% this year, with the firm guiding to diluted EPS of $2.90–$3.50, or $3.40–$4.00 when excluding restructuring costs. The company recently reported fourth-quarter revenue of $22.2bn, slightly ahead of last year, with profits boosted by cost-saving initiatives and a freight spin-off plan.
Closer to home, housebuilder Barratt Redrow will unveil its annual results on Wednesday. The group has struggled with falling demand, as higher mortgage rates and buyer caution weighed on sales. Still, the company remains in a robust financial position, backed by a £2.9bn order book and £800m in net cash.
CEO David Thomas recently described market conditions as “challenging,” but highlighted that integration with Redrow has already delivered £69m in savings, with more to come as operations are streamlined. Despite share prices sitting near their lowest since late 2022, the company is positioning itself to benefit from the UK’s long-term housing supply gap.
With interest rate decisions, inflation data, and key corporate updates all falling in the same week, investors face a packed agenda. Global markets will be looking for clarity on whether inflation can be tamed without pushing economies into deeper slowdowns.
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