News

Before next week's FOMC meeting, the market's expectations for the magnitude of the Fed rate cut have fluctuated. After the release of the U.S. CPI data in August, the market generally expects a higher likelihood of a 25 basis point (bps) rate cut. However, articles from The Wall Street Journal and the Financial Times have sparked a reassessment of the rate cut magnitude.

The Wall Street Journal's "New Fed Wire" by Nick Timiraos published an article suggesting that a rate cut of both 25bps and 50bps is a "close call." Matt Luzzetti from Deutsche Bank believes that despite the article leaning towards supporting a larger rate cut.

Colby Smith from the Financial Times also published a similar article, stating that next week's meeting is a "close call." Matt Luzzetti's interpretation is that this article tends to oppose a larger rate cut.