#TrumpTariffs Federal Reserve Set to Announce Emergency Rate Cut and Liquidity Injection Amid Market Turmoil — Cry

The Federal Reserve is expected to announce an emergency interest rate cut along with a liquidity injection at its policy meeting later today, as global markets reel from extreme volatility, rising recession fears, and the fallout from former President Donald Trump’s new tariff policies.

Fed Under Pressure to Act Fast

With US equities suffering their worst back-to-back losses since the 2008 crisis and bond yields collapsing, traders are now pricing in up to 125 basis points of rate cuts by the end of 2025. There's a 40% chance the Fed could slash rates within days — even before its next scheduled meeting on May 7.

Bob Michele, global head of fixed income at JPMorgan Asset Management, warned that the Fed cannot afford to wait for the financial system to break. “We cannot believe the Fed will wait until something breaks before responding,” he said.

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