Tonight at 11:00 PM Pakistan Time, the Federal Reserve will announce its very important FOMC decision, and there is a strong expectation in the market that the Fed will make another rate cut today. Traders, investors, and the entire global markets are waiting for this moment.
Today's decision will affect not only America but also crypto, stocks, the dollar index, commodities, and emerging markets directly.
Why does it seem like the Fed will cut rates today?
A slowdown in the US economy is clearly visible — hiring is slow, job growth is weak, and inflation is down. All these signals are forcing the Fed to support the economy. For this reason, the markets are almost sure that a 25 bps cut will happen today.
What will happen if the Fed cuts rates?
After a rate cut, the US dollar could weaken, global liquidity may improve, and there is a strong chance of seeing upside momentum in risk assets (crypto + stocks).
What will happen if the Fed uses a hawkish tone?
If a weak signal for future cuts is given along with the cut, the market could be short-term volatile. The tone will be the most important factor today.
What is important to watch today?
The Fed's future plan in the statement — whether there will be continued rate cuts in 2026 or if there will be a pause. This tone will determine the direction of the markets.
Tonight's FOMC decision could change the direction of global markets — at 11:00 PM Pakistan Time, everyone's eyes will be on this.
