The markets await the reduction

The most important demand for investors this week focuses on whether Federal Reserve officials will meet the market expectations to lower interest rates during the following year. A quarter of a percentage point is reduced as decisions are when the Federal Reserve declares its decision on monetary policy on Wednesday, with a little possibility to reduce half a point amid indications of the growth of work in the United States. US President Donald Trump told reporters on Sunday that he is expecting a “big reduction” this week. However, the markets are already taking into account additional discounts that extend to 2026 to prevent stagnation. This assumption resulted in the yields of treasury effects to the lowest levels in months and brought US equities to record levels and the weakest dollar. Short -term effects remained stable on Monday when the mortgage reached 3.55%yields for two years, while the mortgage returns for ten years rose one basis point to 4.07%. You may be interested in: The Federal Reserve chairman leaves the door open to reduce interest in September to expect the ‘federal’ decision. This situation increases the investigation into Powell’s comments and interest rate expectations for officials, known as the ‘point plan’, to determine whether the bank plans to follow a more cautious approach in reducing monetary policy. “I probably see a 25 -point reduction this week,” said Jack McKenter, director of the Bond wallet at the Brandywine Investment Management. He added: “The issue is whether the statement will focus more on the labor market than inflation.” Macinary is still buying bonds and adding effects for 30 years, believing that more indications of the poor labor market can show investors that the Federal Reserve was too late. Financial markets usually tend to give concern about the labor market this Wednesday, with the expected Federal Reserve to issue a tone that tends to facilitate. US stock indicators and bond market bonds, the turnover of standard random effects for ten years has revolved around the lowest level since April. Meanwhile, the S&B 500 index approaches a high historical level, while the Nasdaq 100 index, overcome by technology, has shared the longest range of profits in more than a year, his way to a new record. As far as the currency level is concerned, the dollar has had trouble recovering from its biggest loss in the first half of the year since 1973, which was partially influenced by the expectations of serious discounts by the Federal Reserve. However, some stock traders take centers of hedging against the possibility of fluctuations, partly due to the expected result to reduce a quarter of a point already priced. Options traders bet that the S&B 500 index will move 1% in any direction on Wednesday, which will be the largest movement of the index within about three weeks. See also: The US federal reduction of twice before the end of the year said Iur Capital CEO Gareth Ryan said the federation’s degree reflected by the Federal Reserve will be decisive. He added that if the plan confirmed another reduction by the end of the year and in the first quarter of 2026, it would not expect a huge response to the shares. He continued: “But if the point scheme is less clear about lowering interest rates in the first quarter, it opens the door for greater move in the market.” “With inflation, still rising slowly and not to accelerate, the decline in labor market data and consumer spending stability, evaluating traders for the possibilities of a more powerful job to facilitate the Federal Reserve side, and how it can support more treasury effects.” The JB Morgan Chase trading division warned against a similar danger to the shares and said the meeting “could change into an event when the news was announced with the fall in investors.” Of course, investors take into account the recent pressure on the Federal Reserve, as Trump continues to criticize Powell for slowing down the reduction of borrowing costs. Trump’s economic adviser, Stephen Miran, may be on the way to get approval to appoint him as a member of the Federal Reserve at the right time to participate in this week’s decision. Read more: Trump nominates Stephen Miran to fill the position of Kogar in the ‘federal’ in July, when the Federal Reserve retained fixed interest rates, the two voters opposed it in favor of reducing interest. Investors can get their signals from the mood composition this time, according to Viner Bhansali, founder of the Longtail Alpha. Bhansali said that if the bank reduces a quarter point and there are no opponents who want to reduce more, or if Miran only if appointed, it will be considered a strict position. He added: “The market now takes into account a central central bank that will be aimed at excessive facilitation. This is the idea of ​​the danger.”