🏛️ As the FOMC meeting approaches, market speculation on different expectations for interest rate cuts has increased. How should investors respond?

As the Federal Reserve's FOMC meeting on September 18 approaches, the market is holding its breath waiting for the Federal Reserve's interest rate decision. A recent report from 10X Research warned that if the Federal Reserve decides to cut interest rates by 50 basis points, it could herald some worrying economic data, resulting in significant short-term volatility in the market.

Currently, according to CME data, the market predicts that the probability of a 25 basis point interest rate cut next week is as high as 73%, while the probability of a 50 basis point interest rate cut is 27%. This means that there is nearly a 1/3 chance that the Fed will adopt a more aggressive 50 basis point interest rate cut, while more than 2/3 of the possibility will be a more moderate 25 basis point interest rate cut.

Interest rate cuts have always been an event that the market is looking forward to. Some people believe that only after an interest rate cut, and then with the increase in liquidity, will altcoins have the opportunity to see significant price increases.

However, the specific reaction of the market is random. So whether it's going up or down, and whether any potential surge will happen before a rate cut, with a rate cut, or after a rate cut, is all unknown and all possibilities exist. We will wait and see and make active responses and countermeasures.

At the same time, historical data shows that the Fed's decision to cut interest rates usually leads to a small correction in the market before and after the announcement. At the same time, if the Federal Reserve cuts interest rates by 50 basis points at one time, they must have seen some very worrying data behind the scenes, which may cause great turmoil to the market in the short term!

I personally agree with the research report of 10X Research. The view is that unless a major financial market crisis occurs within the next week, the probability of a 50 basis point interest rate cut is unlikely.

Therefore, if the Federal Reserve decides to cut interest rates by 25 basis points, this may be more positive news for the investment market, because it shows that the economic situation is within control, the overall state is relatively stable, and the extent of the interest rate cut is also within expectations. .

💬How much do you think the Fed will cut interest rates at its upcoming meeting? 25 basis points or 50 basis points? Will you adjust your investment portfolio in the face of possible market fluctuations? Leave your opinions in the comment section!

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