🎈🎈 The markets expect a hawkish cut today for interest rates, so what does that mean?
🔘 The U.S. Federal Reserve is expected to reduce the benchmark interest rate by a quarter percentage point today, Wednesday, but the markets should not expect a significant rise in response. This is because Wall Street traders anticipate this to be a "hawkish cut," according to a report from CNBC.
◀ In market language, the term "hawkish cut" refers to the Federal Reserve reducing the interest rate while sending a message that no one should pin their hopes on the next meeting.
◀ Traders at JP Morgan, based on the chief U.S. economist at the bank, explained that a hawkish cut in interest rates by the Fed on Wednesday means two things. First, that 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, and this 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 continued concerns about inflation and will not commit to any future monetary actions $BNB
