Analysis: A 25 Basis Point Fed Rate Cut in September May Already Be Priced In, A 50 Basis Point Cut Could Drive the Market
Article is form followin
September 13, 2024
This article is translated by ChatGPT Show original
According to The Block, Johns Hopkins University economist Steve Hanke believes that the market has already priced in a 25 basis point interest rate cut by the Federal Reserve next Wednesday, and it could lead to a "sell-the-news" event for risk assets.
Hanke stated, "The market has already priced in a 25-basis-point rate cut, meaning that an actual cut could disappoint and lead to a 'sell-the-news' reaction. On the other hand, a 50-basis-point rate cut is not factored in. If it happens, it could drive the market higher."
Source
1. Disclaimer: The views expressed are solely those of the author and do not reflect the stance of Gen3. They are not intended as investment advice.
2. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as investment or other advice.