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Jianxin Wealth Management: The market expects the Federal Reserve to keep interest rates unchanged tomorrow and may cut three times this year
Most markets expect the Federal Reserve to stand pat at tomorrow's and March's monetary policy meetings.
The Fed will announce its interest rate decision this Thursday. Lin Changjie, a financial advisor at Jiaxin Wealth Management Hong Kong Limited, believes that investors seem to be quite confident that the Fed will "transition" from a restrictive rate policy to a rate cut, but the specific timeline is still unclear. With recent better-than-expected economic data in the United States, investors have scaled back their expectations for Fed measures, reducing the chance of a rate cut in the spring. The market mostly expects the Fed to remain on hold at tomorrow's and March's interest rate meetings. Lin Changjie said that despite the near-term outlook for interest rates possibly being in bearish territory, investors generally remain optimistic about the overall situation. So far, the performance of quarterly earnings in the US stock market has been mixed, but economic data outside of manufacturing continues to support the possibility of the economy achieving a "soft landing" and avoiding a recession. Looking ahead, there is still room for three rate cuts this year. Unless the Fed suddenly raises rates tomorrow, now seems to be a time to remain optimistic.
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