TheHumanHeartIsFrightening.
Tonight, the Fed will basically cut 100% by 25 basis points, which is the third cut in 2025, bringing the federal funds rate to the range of 4.25%-4.5%. The market has long been priced in, so the interest rate cut itself will not fry. The key is to look at two things: 1. New dot plot: The September version says that there will only be one cut (25bp) in 2026, and this time it is likely to be revised down twice or maintain once or twice, but the overall will be less than the market thinks (the market is now betting on three or four times in 2026). This is a hawkish rate cut - it has been lowered
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