At 2 AM tonight, the Federal Reserve will announce its interest rate decision. There will be no rate cuts in May; it all depends on Powell's speech at this meeting, including expectations for June. Not cutting rates won't be negative news either, as the speculation around this has been going on for a long time, so it is considered to have been digested in advance. The decision not to cut rates in May will squeeze the frequency of rate cuts in the second half of the year. Once we get past this point, the market will only speculate on rate cut expectations. If the Federal Reserve cuts rates three times between June, September, and December, the market will have sufficient liquidity, including hot money.
Let's wait and see tonight!
