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 tone in this meeting, including expectations for June. Not cutting rates won't be negative news, as the market has been speculating on this for a long time, so it can be considered as already digested. The decision not to cut rates in May will compress the frequency of rate cuts in the second half of the year. Once we pass 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.
Looking forward to tonight!