🚹 FED WEEK = MARKET NERVES ON EDGE 🚹

U.S. inflation has cooled to ~2% 🎯

But Powell has stayed cautious, sticking to the 25 bps cut narrative for the last 3 months ⏳

So the big question 👇

Does the FED cut rates this week?

🔍 Base case:

✅ YES, a cut is likely — but 25 bps, not 50.

Why not 50?

‱ The FED wants to avoid shocking markets

‱ Powell prefers gradual easing, not panic cuts

‱ Jobs, growth, and financial conditions are soft — not broken

⚠ A 50 bps cut would signal stress under the surface — something Powell clearly wants to avoid unless forced.

Translation for markets 📊

‱ 25 bps = “controlled slowdown”

‱ 50 bps = “something’s wrong”

Right now, the FED wants confidence, not chaos.

Expect caution.

And remember — Powell talks slow, markets move fast 👀

#FED #Rates #Inflation #Macro #Markets #USD #RiskAssets