So far this year, the Federal Reserve has made two rate cuts. Now, another major decision is happening today at the FOMC meeting. Federal Reserve is expected to make a 3rd consecutive rate cut đ
Markets are pricing in around a 95.4% chance that the Fed will cut rates today đ
Why does this matter? Because markets arenât just watching whether the Fed cuts by another 25 basis points; theyâre paying close attention to what the central bank projects for 2025 đ
The number of future cuts the Fed expects to make will influence everything from stock prices to bond yields đ
đ Dovish (More Cuts): If the Fed signals more cuts than expected in 2025, markets could rally strongly.
đ€·ââïž Neutral (Expected Cuts): If the central bank stays in line with what markets currently anticipate, look for a mild, positive response.
đ Hawkish (Fewer Cuts): If the Fed indicates fewer cuts ahead, it may dampen enthusiasm, causing stocks to fall and treasury yields to rise.
