This article first appeared in The Edge Malaysia Weekly on September 8, 2025 – September 14, 2025

The developments over the potential replacement of US Federal Reserve chair Jerome Powell continue this week, as US Treasury Secretary Scott Bessent began interviewing candidates for the position last Friday.

This comes after the confirmation hearing for Stephen Miran, chair of the Council of Economic Advisors in US President Donald Trump’s administration, to replace Adriana Kugler who resigned a month ago from the Federal Reserve Board of Governors.

Miran and Bessent have emphasised the importance of maintaining the Fed’s independence, while also critiquing Powell’s leadership for misjudging inflation trends and labour market dynamics.

It is noteworthy that Miran and Bessent, who co-authored the Mar-a-Lago blueprint, advocate for reduced interest rates, currency realignment and tariffs as key measures to address US trade imbalances.

Miran is not being considered to replace Powell, as he will likely only serve the remainder of Kugler’s term, until Jan 31, 2026. Powell’s term as chair will expire in May 2026.

Ahead of the Federal Open Market Committee (FOMC) meeting, which will take place on Sept 17, the US Bureau of Labor Statistics will release the August Consumer Price Index (CPI) on Sept 11.

The reading will be a key variable in the FOMC’s decision on its policy rate. However, Powell hinted at the possibility of a rate cut at the Jackson Hole Symposium last month, emphasising the importance of employment data.

Note that the US Employment Report was released on Sept 5, after The Edge went to print.

A Bloomberg survey expects inflation to have inched up to 2.9% in August, compared with 2.7% in July. On a month-on-month basis, the survey indicates expectations of an elevated inflation backdrop, at 0.3%, compared with 0.2% in July.

Meanwhile, the European Central Bank (ECB) is expected to keep its policy rates unchanged on Sept 11, following eurozone inflation, which edged higher in August, above the central bank’s target.

Consumer prices rose 2.1% year on year (y-o-y) in August, up slightly from 2% in July, according to Eurostat. Core inflation, which excludes energy and food, stood at 2.3% in August, while services inflation slowed to 3.1%.

Officials maintained the deposit rate at 2% in July, with ECB president Christine Lagarde stating that the central bank was satisfied with current inflation and the stability of the eurozone economy.

In Asia, China’s exports growth is estimated to have slowed down in August, to 5.6% y-o-y compared with 7.2% recorded in July, according to a Bloomberg survey. The National Bureau of Statistics will release the data on Sept 8.

However, the survey estimated imports to have grown faster in August at 4.7%, compared with 4.1% in July. Asia’s largest economy’s trade balance was pencilled in at US$98.02 billion last month, slightly less than the US$98.24 billion in July.

Taiwan is expected to release its trade data on Sept 9. A Bloomberg survey estimated exports growth to normalise to 26.5% y-o-y in August, after the blistering 42% growth in July.

The July outturn surpassed the market’s forecast of 28.7% growth, reflecting an export economy influenced by ongoing increases in semiconductor and electronic component orders.

Malaysia is scheduled to release its July industrial production print as well as manufacturing sales value on Sept 11. Meanwhile, Bank Negara Malaysia is expected to release its foreign reserves as at Aug 29 on Sept 9.

On the corporate front, the results reporting season for companies listed on Bursa Malaysia for the quarter ended June 30, 2025, has ended. However, a few companies with a quarter ended July 31, 2025, could be releasing their results this week.

This includes Bermaz Auto Bhd (KL:BAUTO), which is expected to release its results for the quarter on Sept 11, while Poh Huat Resources Holdings Bhd (KL:POHUAT) and Binastra Corp Bhd (KL:BNASTRA) will release their results on Sept 12.

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