Fed's Expected 25 Basis Point Cut Could Trigger Risk Asset Sell-Off
CryptoNewsTerminal Staff13 Sep, 2024
Fed's Expected 25 Basis Point Cut Could Trigger Risk Asset Sell-Off
Fed's 25 Basis Point Cut Expected, Could Trigger Risk Asset Sell-Off In an interview with The Block, Steve Hanke, a professor of economics at Johns Hopkins University, warned that "the market is already looking ahead to a 25 basis point cut by the Federal Reserve in September and that may already be priced into key asset markets. So when they actually cut 25 basis points, you could actually have a 'sell the news' event in risk assets." Hanke added that "the market is not pricing in a 50 basis point cut. If they actually cut 50, that could be a shot in the arm for the markets." The Federal Reserve is widely expected to cut interest rates by 25 basis points at its next meeting in September. However, there is some uncertainty about whether the Fed will cut by 50 basis points. If the Fed does cut by 50 basis points, it could be a positive surprise for the markets. It is important to note that Hanke's comments are just one perspective. There are other economists who believe that the Fed will not cut interest rates at all in September.
