🎈🎈 The markets anticipate a hawkish cut today in interest rates, what does that mean?
🔘 The U.S. Federal Reserve is expected to lower 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 "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 JPMorgan, 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 Fed members' expectations for the interest rate level - will indicate that the central bank expects only one cut next year, which is not the low interest rate regime that some investors and U.S. President Donald Trump are calling for.
◀ The second point is that Fed Chair Jerome Powell will indicate in his press conference ongoing concerns about inflation and will not commit to any future monetary actions $SOL
