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 👀
Markets are pricing in around a 95.4% chance that the Fed will cut rates today 📊
Why does this matter? Because markets aren’t just watching whether the Fed cuts by another 25 basis points; they’re paying close attention to what the central bank projects for 2025 🔍
The number of future cuts the Fed expects to make will influence everything from stock prices to bond yields 👇
📈 Dovish (More Cuts): If the Fed signals more cuts than expected in 2025, markets could rally strongly.
🤷♀️ Neutral (Expected Cuts): If the central bank stays in line with what markets currently anticipate, look for a mild, positive response.
📉 Hawkish (Fewer Cuts): If the Fed indicates fewer cuts ahead, it may dampen enthusiasm, causing stocks to fall and treasury yields to rise.
