Preview of the Federal Reserve's Decision: It's difficult for the US dollar to maintain its upward trend
ING believes that there is a slightly higher possibility of the Federal Reserve cutting interest rates by 25 basis points, but while remaining cautious, it will send a dovish signal. This may include some members voting in favor of a 50 basis point rate cut, and Powell opening the door to future large rate cuts. A 25 basis point rate cut may lead to a rise in the US dollar, however, if our expectation that Powell will hold a dovish press conference is correct, then the US dollar may struggle to maintain its upward momentum in the short term. If the Federal Reserve cuts rates by 50 basis points, it will trigger panic and weaken the US dollar. Powell will then need to show that a 50 basis point rate cut is not a "panic" move, meaning that the Federal Reserve is not overly concerned about economic recession and the job market
Jinshi Data, September 18th news, ING believes that there is a slightly higher possibility of a 25 basis point rate cut by the Federal Reserve, but while remaining cautious, it will send a dovish signal. This may include some members voting in favor of a 50 basis point rate cut, and Powell opening the door to future large rate cuts. A 25 basis point rate cut may lead to a rise in the US dollar, however, if our expectation that Powell will hold a dovish press conference is correct, the US dollar may have difficulty maintaining its upward momentum in the short term. A 50 basis point rate cut by the Federal Reserve would trigger panic and weaken the US dollar. Powell would then need to show that a 50 basis point rate cut is not a "panic" move, meaning the Federal Reserve is not overly concerned about economic recession and the job market