The Fed is about to announce its interest rate decision, and the market generally expects a rate cut

On Thursday morning Beijing time, the financial market will usher in a critical moment for the Fed. The Fed will announce its latest interest rate decision at 2:00 a.m., and then at 2:30 a.m., Fed Chairman Powell will hold a press conference to elaborate on the considerations behind the policy decision.

Market sentiment is tense and expectant, because the recent article by Nick of the "Federal Reserve News Agency" has attracted attention again. The frequent mention of a 50 basis point interest rate cut in the article has led the market to generally speculate that this may be a signal of the Fed's instruction. According to the latest data from CME's "Fed Watch", the market expects the probability of the Fed cutting interest rates by 50 basis points in September to be 63.0%, much higher than the 37.0% for a 25 basis point interest rate cut.

Although the specific extent of the interest rate cut has yet to be announced, the market generally expects the Fed to cut interest rates by at least 25 basis points to cope with the uncertainty brought about by the global economic slowdown and trade tensions. However, it is worth noting that short-term interest rate cuts may not be able to immediately change the economic status quo, and long-term interest rate cuts are expected to truly release market liquidity and promote economic recovery.

Investors are closely watching the Fed's official statements and Powell's remarks for more clues about future monetary policy and adjust their investment strategies accordingly.