The Federal Reserve will announce the Intrerest Rate decision and summary of economic projections at 2 p.m. next Thursday, and analysts have differing views on the magnitude of the rate cut.

BlockBeatNews

BlockBeats News, on September 14th, according to the schedule, the Federal Reserve will announce the Intrerest Rate decision and economic outlook summary at 2:00 PM next Thursday. Traders are pricing in the possibility of a 25 basis point and 50 basis point interest rate cut by the Federal Reserve next week, which is almost equally likely. The fluctuating bets reflect one of the key questions the market faces today: whether the Federal Reserve will use aggressive rate cuts to prevent labor market weakness, or take a slower pace of rate cuts to maintain a wait-and-see approach. Federal funds futures pricing shows that the Federal Reserve will cut interest rates by more than two percentage points over the next 12 months, a scenario rarely seen outside of an economic recession. James St. Aubin, Chief Investment Officer of Ocean Park Asset Management, which manages $5.3 billion in assets, said, ‘It seems that only when the Federal Reserve knows something that others don’t, will it start a rate-cutting cycle with a large rate cut when the S&P 500 index is approaching historical highs and credit spreads are narrowing. In terms of market sentiment, I think a 50 basis point rate cut may do more harm than good.’ However, even if the Federal Reserve cuts interest rates by 25 basis points next week, as long as Powell does not object to the expectation of a rate cut of 50 basis points once or even twice in the final two meetings this year, this meeting may also be seen as a dovish rate cut. (Jin Shi)

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GateUser-e97d8006vip
· 2024-09-14 12:26
All in All in 🙌
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MysteriousAttackvip
· 2024-09-14 12:24
No reduction
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