๐Ÿšจ FED WEEK = MARKET NERVES ON EDGE ๐Ÿšจ

U.S. inflation has cooled to ~2% ๐ŸŽฏ

But Powell has stayed cautious, sticking to the 25 bps cut narrative for the last 3 months โณ

So the big question ๐Ÿ‘‡

Does the FED cut rates this week?

๐Ÿ” Base case:

โœ… YES, a cut is likely โ€” but 25 bps, not 50.

Why not 50?

โ€ข The FED wants to avoid shocking markets

โ€ข Powell prefers gradual easing, not panic cuts

โ€ข Jobs, growth, and financial conditions are soft โ€” not broken

โš ๏ธ A 50 bps cut would signal stress under the surface โ€” something Powell clearly wants to avoid unless forced.

Translation for markets ๐Ÿ“Š

โ€ข 25 bps = โ€œcontrolled slowdownโ€

โ€ข 50 bps = โ€œsomethingโ€™s wrongโ€

Right now, the FED wants confidence, not chaos.

Expect caution.

And remember โ€” Powell talks slow, markets move fast ๐Ÿ‘€

#FED #Rates #Inflation #Macro #Markets #USD #RiskAssets