Jakarta, - The prospect of cutting interest rates at the United States (US) central bank The Federal Reserve (Fed) which is getting closer has triggered coal prices to move attractively.

Launching Refinitiv data, at the end of trading Friday (2/4/2024) ICE Newscastle coal prices ended at US $ 145.75 per ton, up 1.36%.

The strengthening continued the day before and marked three consecutive days of coal prices flying. This accumulates the strengthening in a week to 4.67%, marking the price of coal has been flying for three consecutive weeks.

As is known, the United States (US) central bank The Federal Reserve (The Fed) again maintained its benchmark interest rate at the level of 5.25-5.50%. However, the Fed gave a strong signal that it would cut interest rates at its September meeting.

Unlike the previous FOMC meeting, the Fed at this month's meeting gave a clearer signal about cutting interest rates starting next September. In its statement, the Fed explained that inflation is now heading towards their target range of 2%.

"In recent months there has been further progress toward the 2% inflation target. If these conditions are met, a policy rate cut could be an option at the next meeting in September," Fed Chairman Jerome Powell said in a press conference after the FOMC meeting, quoted from CNBC International.

The interest rate cut is expected to be 25 bps. Powell emphasized that a 50 bps rate cut is not yet in the Fed's mind.

"I don't want to be too specific about what we're going to do, but it (a 50 bps cut) is not something we're considering at this time," he said.

The Fed's interest rate cut signal is considered to be positive news for the commodity market, especially coal. Because there will be potential demand for coal from a booming economy after the trend of high interest rates ends