Fed chair Jerome Powell cited improvements in the US’ economic outlook and reduced risks to inflation and employment – a shift that cooled expectations for near-term rate cuts. DECODING ASIA Navigate Asia ina new global order Get the insights delivered to your inbox. As for Asean bond markets, he noted that a stickier US policy backdrop implies a “higher-for-longer bias”, meaning lower expectations for reduced interest rates. In the absence of signals for growth weakness, he said that Malaysia and Indonesia are likely to keep policy rates unchanged. This includes “pulling more levers to impact the economy and markets – not just setting policy rates”.