How the expectation of 50 basis points from the Fed went from 2 percent to 60 percent: Two mysterious articles...

The Fed's 50 basis point discount expectation, which fell to 2% last week, reached 60% within hours. Although there is no new development, the experience of such a situation is linked to the two mysterious news of the Wall Street Journal and the Financial Times.

While the new interest rate decision to be announced by the US Federal Reserve (Fed) tomorrow is eagerly awaited, the markets seem to be quite confused. The market expectation of 50 basis points, which fell to 2% last week, increased to 60% this week.

WSJ: 50 basis points should be discounted

An article titled "Interest rates are too high, the Fed should reduce 50 basis points" shared by the Wall Street Journal, one of the heavyweights of the US financial media, on its website on Sunday, was much talked about. In the text, it was written that inflation fell rapidly to 2.5%, and the big difference between the core inflation and the Fed's 2% target was caused by inflation in the automobile and real estate sector. In addition, it was stated in the text that the job market is becoming more and more weak. It is also known that the statistics that the Fed attaches the most importance to are always related to the job market.

The Financial Times followed.

After this article of the Wall Street Journal, a similar news/article came from another financial media giant, the Financial Times. Here, too, it was written that the 50 basis point discount will relieve the now stuck economy.

It drew attention that there was no objection or reaction to these two articles from the Fed. In fact, Fed New York branch president William Dudley emphasized that he expects the institution to make a 50 basis point discount.

In CME, which shows market expectations in futures, the 50 basis point discount expectation has increased to 67% before tomorrow's decision...

Elizabeth Warren, one of the important names of the Democrats yesterday, also called for the Fed to start discounts tomorrow with 75 basis points.