The clock is ticking. All eyes are on the Federal Reserve this week as it marks the start of the much-anticipated easing cycle. Yeah, the Fed’s monetary policy committee is widely expected to cut interest rates for the first time since 2020, making this central bank meeting one of the most important ones ever in recent history.
The big question is, will it be a 25 or 50 bps cut? What do you think?
During the peak of market turbulence from mid-July to early August, expectations leaned heavily towards a 50 bp cut. However, as market conditions stabilized, the likelihood of such a significant move has been reassessed, with odds now favoring a smaller cut.
On Wednesday, Jerome Powell will answer your questions about anything that concerns the universe. Bank of America has advised investors to temper reactions to any pronounced hawkish or dovish interpretations of the meeting’s outcome.
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