US Federal Reserve's rate cut: Rate cut likely, but by how much? Will it be a 25 bps or 50 bps?

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Key Points

The FOMC meeting on September 17-18 is crucial for global markets, with expectations of a potential rate cut..

The upcoming Federal Open Market Committee (FOMC) meeting on September 17-18 could play a HUGE role in shaping global markets, but its actual impact remains uncertain.S)..

A 25 bps cut could disappoint some market participants, Hajra notes, but a 50 bps cut could signal deeper concerns about the economy, potentially causing negative reactions. ..

Jack Janasiewicz, portfolio manager, at Natixis told The Economic Times, Maybe the market was looking for a softer inflation print which would give the Fed more reason to cut by 50 basis points next week..

However, he points out that a larger 50 bps cut would have a greater impact but may also signal that the Fed is more concerned about a slowing U.S. economy..