Tomorrow, the Fed will announce its interest rate decision, with the current predictions as follows:
There is a 95.4% chance that the Fed will reduce the interest rate by 0.25% (equivalent to 25 basis points). There is a 4.6% chance that the Fed will maintain the current interest rate.
I predict that the Fed will choose to lower the interest rate. However, what is even more important is the speech of Fed Chairman Jerome Powell after this decision.
If Mr. Powell emphasizes that the recent increase in inflation (from both the production and consumption sides) is not a major concern, and at the same time hints at the possibility of expanding the balance sheet, this will be a positive signal for the market.
Let's wait and see the actual developments!