The Federal Reserve seems to follow a specific pattern when formulating monetary policy, which has a significant impact on the financial markets. Before the interest rate meetings, the Federal Reserve often adjusts expectations to realistic levels and then releases seemingly pessimistic news. This practice usually leads to pullbacks and sharp falls across various markets. However, once the interest rate meeting concludes, the situation undergoes a dramatic shift. The Federal Reserve begins to outline a blueprint for future expectations, which often triggers a rapid rebound in the markets.
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