No interest rate cut: Fed chairman Jerome Powell is likely to rebuff Trump again

Jürgen Molnar, capital markets strategist at broker RoboMarkets, also expects a pause. However, the meeting has a certain explosive potential: "Because for the first time since 1993, two Federal Reserve governors – Christopher Waller and Michelle Bowman – could vote against keeping the key interest rate on hold." Both board members have openly considered a rate cut. Fed Chairman Jerome Powell, however, has signaled that the central bank is in no hurry to cut interest rates as long as the effects of Trump's tariff policy on inflation and the labor market have yet to be assessed.

Ahead of the upcoming interest rate decision in the US, positive news is coming from the job market: According to a survey, 104,000 jobs were created in the private sector in July, following the cuts of a revised 23,000 (originally: minus 33,000) in June. This is according to the company survey by the human resources service provider ADP, published on Wednesday. Thus, job growth in July exceeded the expectations of economists surveyed by Reuters, who had only anticipated an increase of 75,000 jobs. The government's labor market report, which also includes jobs in the US public sector, is due out on Friday.