The US Federal Reserve is lowering interest rates for the first time in two years, making loans cheaper. This is expected to increase liquidity in the stock and crypto markets, historically leading to rapid price growth and a potential bull market.
A gradual 0.25% rate cut signals control and a likely soft landing, while a sharper 0.5% cut could trigger panic and raise fears of economic issues or a recession in the U.S
Based on the latest macroeconomic data, I expect a 0.25% rate cut and a soft tone from the Fed. Although monetary easing tends to positively impact markets in the long term, I would refrain from making trades until September 20th, as the market may behave irrationally with high volatility. Long-term positions have greater potential and lower risks compared to short-term trades during such news events.