Institutions: Wall Street expects the Federal Reserve to adopt a "hawkish rate cut".
AI Summary1 min read
TL;DR
The Federal Reserve is expected to cut interest rates this week, but with a hawkish tone, as indicated by projections of only one rate cut next year and ongoing inflation concerns from Chair Powell.
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Federal Reserveinterest rate cuthawkish toneinflationJPMorgan
On December 11, the Federal Reserve is expected to cut its benchmark interest rate at its meeting this week, but this rate cut may have a hawkish tone. What does this mean? For JPMorgan traders, there are two key points to consider:
First, the dot plot shows that the Federal Reserve expects to cut interest rates only once next year;
Second, Federal Reserve Chairman Powell pointed out that concerns about inflation remain, and did not commit to further interest rate cuts. (Jinshi)