Institution: The Fed may want to avoid sending the wrong signal by cutting interest rates sharply
ChainCatcher news, the Federal Open Market Committee (FOMC) of the United States will announce its interest rate decision later today. Maybank analysts stated in a foreign exchange research and strategy report that the market's expectation for a 50-basis-point rate cut by the Federal Reserve has stabilized in the 60%-70% range. However, analysts said the FOMC may want to avoid sending the wrong signal to the market through a large rate cut, partly because this could cause panic. Analysts added that market participants are expected to focus on Federal Reserve Chairman Powell's press conference to understand the subtle differences in the forward guidance for future rate cuts.
