The Fed may accelerate rate cuts, and a 50 basis point cut in November has become the focus

The Fed's loose monetary policy may usher in new changes. In an interview, St. Louis Fed President Musallem made a heavy statement, saying that the weakness of the US economy may exceed expectations, and the labor market is also not optimistic. This statement sent a strong signal that the Fed may accelerate rate cuts.

Musallem pointed out that if the US economy is indeed as weak as he said, then a faster pace of rate cuts would be appropriate. This view echoes the current background that the US inflation rate continues to cool and is close to the Fed's 2% target. Against this background, the market's expectations for the Fed's rate cut in November are becoming stronger.

Traders are betting that the Fed is likely to cut interest rates again by 50 basis points in November. Currently, interest rate futures contracts reflect a 50 basis point probability of a rate cut in November of up to 54%. This expectation not only reflects the market's expectations for the Fed's loose monetary policy, but also reflects investors' concerns about the economic outlook.

It is worth noting that as the Fed's expectations for rate cuts heat up, the European Central Bank may also take aggressive rate cuts. Phil O'Donagho, an economist at Deutsche Bank, said in a recently released report that the European Central Bank may join the ranks of interest rate cuts. This news further exacerbated the market's concerns and expectations about the global interest rate cut trend.

Overall, the interest rate cut expectations of the Federal Reserve and the European Central Bank have had a profound impact on the global financial market. Investors should pay close attention to the policy trends of these two central banks to formulate reasonable investment strategies and respond to market fluctuations. At the same time, it is also necessary to pay attention to other economic data and policy changes to fully grasp market dynamics and economic trends. #HMSTR开盘 #美国8月核心PCE创4月以来新高 #你有多少HMSTR？ #你有多少HMSTR？ #BTC走势预测 $BTC $ETH