⏳ A few hours before the fateful decision… what to expect?
The time for the Federal announcement is approaching, and the most likely scenario is a reduction of 25 basis points. But the real event is not the decision, but Jerome Powell's speech. Frankly, I wouldn't be surprised if he is very hawkish.
The recent economic data has been mixed, but the reality is that the U.S. economy is still strong, and even the president has acknowledged that. Therefore, I see that the current reduction is more due to political pressures than an economic necessity.
I expect a hawkish tone from Powell regarding any additional cuts in the future, which may put pressure on the market.
My advice: even if we see a rapid rise, take your profits and wait for the market to stabilize after the speech.
