🎈🎈 The markets expect a hawkish cut in interest rates today, what does that mean?
🔘 The U.S. Federal Reserve is expected to cut the benchmark interest rate by a quarter of a percentage point on Wednesday, but the markets should not expect a significant rise in response. This is because traders on Wall Street anticipate that this will be a "hawkish cut," according to a report from CNBC.
◀ In market language, the term "hawkish cut" refers to the Federal Reserve lowering the interest rate while sending a message that no one should pin their hopes on the next meeting.
◀ Traders at JP Morgan, based on the chief U.S. economist at the bank, clarified that a hawkish interest rate cut from the Fed on Wednesday means two things. First, the so-called "dot plot" - which shows the members' expectations for interest rates - will indicate that the central bank expects only one cut next year, and this is not the low-rate environment that some investors and President Donald Trump are calling for.
◀ The second point is that Fed Chair Jerome Powell will indicate in his press conference that concerns about inflation remain, and he will not commit to any future monetary actions $BNB
