Two scenarios for the Fed’s rate cut this week:
Scenario 1: 25% rate cut: Not as expected, fall!
Scenario 2: 50% rate cut: Exceed expectations, rise!
Scenario 3: 25% rate cut: Soft landing, rise!
Scenario 4: 50% rate cut: Precursor to hard landing, fall!
Scenario 5: 25% rate cut: In the morning, it felt like it was not as expected, fall! In the afternoon, it seemed like a soft landing, rise! At the end of the trading day, I was afraid of being attacked first, fall!
Scenario 6: 50% rate cut: In the morning, it felt like it was beyond expectations, rise! In the afternoon, it seemed to imply the risk of a hard landing, fall! At the end of the trading day, others were panicking and I was greedy, rise!
