#Fed Rate Cut Ahead   #Gate Square Mid Autumn Creator Incentive   This week, most


market participants expect the Fed to cut rates. Most likely, it will be by 25
basis points, as such a move is considered balanced and predictable. However,
there is still a possibility of a sharper decision - a 50-point cut, which
could come as a surprise to investors. The main question is whether the Fed
will meet market expectations. If the cut is larger than forecast, it could
stimulate economic activity, but at the same time fuel inflation risks. If the
regulator limits itself to a minimal step, this will demonstrate its caution.
Thus, the Fed's policy remains "soft", but the final decision will
show how much it is ready to support the economy without losing control over
prices. For example, if the rate is unchanged, the reaction is neutral, if it
is reduced by 25 bp, the market will perceive it positively, because this
option is expected. If it is reduced by 50 bp, the market may react very
positively, because it will look like strong support for the economy. The logic
is simple: the greater the reduction, the stronger the optimism of investors.
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