đš FED WEEK = MARKET NERVES ON EDGE đš
U.S. inflation has cooled to ~2% đŻ
But Powell has stayed cautious, sticking to the 25 bps cut narrative for the last 3 months âł
So the big question đ
Does the FED cut rates this week?
đ Base case:
â YES, a cut is likely â but 25 bps, not 50.
Why not 50?
âą The FED wants to avoid shocking markets
âą Powell prefers gradual easing, not panic cuts
âą Jobs, growth, and financial conditions are soft â not broken
â ïž A 50 bps cut would signal stress under the surface â something Powell clearly wants to avoid unless forced.
Translation for markets đ
âą 25 bps = âcontrolled slowdownâ
âą 50 bps = âsomethingâs wrongâ
Right now, the FED wants confidence, not chaos.
Expect caution.
And remember â Powell talks slow, markets move fast đ
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