Institution: Fed may want to avoid sending wrong signal with large rate cut

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September 18, 2024
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English Translation:

ChainCatcher News: The Federal Open Market Committee (FOMC) will announce its interest rate decision later today. According to a forex research and strategy report by Maybank analysts, market expectations for a 50 basis point rate cut by the Fed have stabilized in the 60%-70% range.

However, analysts say the FOMC might want to avoid sending the wrong signals to the market by cutting rates too aggressively, partly because it could trigger panic. Analysts add that market participants are expected to pay close attention to Fed Chair Jerome Powell's press conference for nuances in the forward guidance regarding future rate cuts. (Jin10)

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