🚨 FED RATE CUT DECISION COMING TOMORROW! 📊
Markets are already pricing in a 95% chance of a 25 BPS rate cut. That alone may not move prices much — the real volatility will come from Powell’s tone and the Fed’s view on the economy, funding conditions, and inflation.
💥 Why this matters:
Liquidity stress is visible — SOFR is spiking, showing banks feel funding pressure.
Any hints of Fed liquidity support or QE could trigger an instant bullish move:
• Funding pressure drops
• Bond yields fall
• Risk assets surge
📌 Two scenarios for tomorrow:
1️⃣ Hawkish Cut
Powell signals inflation isn’t under control
Labor market improving
→ Result: Yields spike, risk assets dump
2️⃣ Dovish Cut
Powell signals inflation impact is minimal
Labor market still weak
→ Result: Yields drop, liquidity expectations rise → Crypto and markets pump
💡 Bonus: If dovish cut comes with liquidity support, markets could flip very bullish, very fast.
🛣️ Roadmap for traders:
Dovish + liquidity support → Bullish
Dovish only → Small pump
Hawkish cut → Sell-off
No liquidity help → Sideways action
Stay alert — Powell’s tone tomorrow will be the real market mover! ⚡
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