The biggest suspense in 15 years: The Federal Reserve's decision will greatly disrupt the stock, bond, and foreign exchange markets

JIN10
2024.09.18 05:30
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The financial market expects the Federal Reserve to start a loose cycle with a 50 basis point rate cut, but investment banks generally predict a 25 basis point cut, which may cause significant short-term volatility in the stock, bond, and foreign exchange markets. George Bory, Chief Investment Strategist for Fixed Income at Allspring, pointed out that it is very rare to see such a divergence in the market 24 hours before a decision. Deutsche Bank believes that this Fed decision may be the biggest surprise in 15 years

Jin10 Data, September 18th news: According to foreign media reports, the financial market expects that the Federal Reserve decision-makers are very likely to start a loose cycle with a 50 basis point rate cut, but major investment banks still predict a 25 basis point rate cut by the Federal Reserve. This may lead to significant short-term market volatility in the stock, bond, and foreign exchange markets regardless of the Federal Reserve's decision. George Bory, Chief Investment Strategist for Fixed Income at Allspring, stated that it is very rare to see market divergence 24 hours before the Federal Reserve takes action. Usually, at this point in time, the Federal Reserve has already conveyed or made the market expect very specific actions. Deutsche Bank believes that compared to market expectations two days before the Federal Reserve decision, this decision by the Federal Reserve may be the biggest surprise in 15 years