💥 The whole market is waiting for this moment! Is the Federal Reserve going to "make a big move" next week?
Market sentiment has changed overnight! After the "little non-farm" and PCE data, interest rate cut expectations have taken center stage again 🎯. The fear index has quickly cooled down, and funds seem to be looking for opportunities again.
Next week's schedule is packed with high-energy events:
· Wednesday at 3:00 AM: Federal Reserve interest rate decision & economic outlook (the core of the core!)
· 03:30: Powell's press conference, where every word could trigger volatility 📢
· Job vacancies at the beginning of the week, speeches from Federal Reserve officials over the weekend... it's a non-stop action.
A critical divergence point has emerged! Market expectations are clearly more hawkish than the Federal Reserve: for 2026, the market is pricing in about 63 basis points of interest rate cuts (almost 3 times), while the September dot plot only hinted at 2 times. This "expectation gap" is the source of all future volatility ⚠️.
What will happen if the Federal Reserve's easing pace is really slower than the market expects? Will the floodgates of liquidity open as wide as imagined? 🚪 This could mean completely different scenarios for various assets.
Is it the anticipation of a post-event celebration, or a re-enactment of the "sell the fact" plot? The answer will soon be revealed. The market keeps asking: has that stage really passed completely?
Leave your thoughts in the comments, and let's chat! 👇
