The Federal Reserve will provide its last answer of the year early in the morning.
The market has already determined a 25 basis point rate cut—with a probability of 89.4%. Both smart money and retail investors are waiting for the same thing.
In fact, everyone has an idea of whether the rate cut will happen; the key is how to draw the expectations chart after the cut.
If it’s just a conventional 25 basis points, paired with a roadmap indicating no further cuts expected next year, the market will likely turn downward directly after that.
