From Investing.com: 2024-09-18 06:32:00

Traders are highly uncertain about the Federal Reserve’s upcoming decision, with potential for high volatility in markets. Market consensus is split on whether the Fed will reduce rates by 25bps or 50bps. This uncertainty is the highest in at least a decade, with traders having difficulty predicting the outcome. Regardless of the decision, abnormal volatility is expected, and Chairman Powell is likely to downplay the immediate impact, focusing on long-term interest rate trends. USD/JPY is expected to have a strong reaction to the Fed’s decision, with a 25bps cut potentially boosting the US dollar while a 50bps cut could see the downtrend resume.



Read more at Investing.com: The 25-50 Bps Cut Debate Implies the Fed Has Already Failed