According to The Block, Johns Hopkins University economist Steve Hanke believes the market has already priced in a 25 basis point interest rate cut by the Federal Reserve next Wednesday. He warns that this could lead to a "sell-the-news" event for risk assets.

Hanke stated, "The market has already baked in a 25 basis point cut, which means the actual cut could be a disappointment leading to a 'sell-the-news' reaction. In contrast, a 50 basis point cut is not priced in. If it were to happen, it could drive the market higher."