🔴 Important — U.S. "Hawkish" Rate Cut Shakes Market Expectations .. 🇺🇸
⭕ The U.S. Federal Reserve is expected to cut the interest rate by 0.25% today, Wednesday, in a move that the markets have largely priced in beforehand, but the most important thing is that this cut is expected to be a "hawkish cut" .. meaning an interest rate cut that does not carry an accommodative tone and does not promise additional cuts soon.
🔎 Why "Hawkish Cut"?
⬅️ The Fed wants to support the economy after signs of a slowdown in the labor market, but it is still concerned about inflation.
⬅️ The Fed's statement is expected to use cautious language to emphasize that this cut does not mean the beginning of a broad easing cycle.
⬅️ The markets recognize that the Fed may halt cuts later if inflation data does not improve.
📉 Expected Impact on Markets :
⬅️ Limited reaction in stocks because the markets had anticipated the cut beforehand.
⬅️ Possibility of the dollar holding firm if Powell's tone is cautious.
⬅️ Bonds may remain under pressure if forecasts indicate no additional cuts are likely soon.
🧭 Summary :
⚠️ The Fed's move may provide some support to the economy, but it will not create a significant upward wave in the markets as long as expectations indicate only one cut and a hawkish tone.
