🏦 Fed's interest rate cut outlook becomes the focus – Powell's signals will determine market direction
This week's FOMC meeting is expected to be one of the most controversial in years, as the market awaits to see the level of internal division within the Fed regarding interest rate cuts and especially how Chairman Jerome Powell "guides expectations"
🔍 Major viewpoints:
• Janus Henderson:
The December meeting is unlikely to create long-term shocks,
But short-term volatility may increase,
The determining factor remains forward guidance – what Powell says is more important than what the Fed does.
• Wilmington Trust:
The market has already priced in the rate cut cycle.
The most important question: How will the Fed "draw" the path? fast – slow – or cautious?
• Nomura:
Warnings that investors are underestimating the risk of the Fed not cutting interest rates.
The dissenting votes will show the level of division and the degree of "independence" within the FOMC
This means: if many members do not want to cut interest rates → the market is likely to "reverse."
$PIEVERSE $PIPPIN $FHE
