Federal Reserve Decision Outlook: Market Focus on Powell's Press Conference

ChainCatcher news, according to Jinshi reports, the market generally expects the Federal Reserve to cut interest rates by 25 basis points, adjusting the policy rate to 3.75-4.00%.

At the same time, it is expected that the central bank will announce the end of quantitative tightening (QT). This meeting will not release the quarterly economic projections report, so the focus will mainly be on Powell's press conference. It is anticipated that Federal Reserve Chairman Powell will once again characterize the rate cut as a risk management measure and will not disclose too much information to maintain market expectations stable in the absence of key economic data.

Currently, the market expects a rate cut by the Federal Reserve in October to be a certainty, with the probability of a rate cut in December also approaching 100%. By 2026, a cumulative rate cut of 117 basis points is expected, higher than the Federal Reserve's projected 75 basis points.