💥🚨 The markets expect a tight rate cut today, what does that mean?🚨💥
🔘 It is expected that the U.S. Federal Reserve will cut the benchmark interest rate by a quarter of a percentage point today, Wednesday, but markets should not expect a significant rise in response. This is because Wall Street traders expect this to be a "tight cut," according to a report from CNBC.
◀ In market language, the term "tight 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.
◀ JPMorgan traders, based on the chief U.S. economist at the bank, clarified that a tight rate cut from the Fed on Wednesday means two things. Firstly, that the so-called "dot plot" - which outlines the Fed members' interest rate expectations - will indicate that the central bank expects only one cut next year, and this is not the low-rate environment some investors and President Donald Trump are calling for.
◀ The second thing is that Fed Chairman Jerome Powell will indicate in his press conference ongoing concerns about inflation and will not commit to any future monetary actions $ETH
