The main focus in the markets today is, of course, the decision of the FOMC meeting.
The question is, will it be a 25 basis point cut in interest rates or 50 basis points ?
Given the current situation, economists/analysts agree that the Fed will cut interest rates by 25 basis points, but traders still take into account a probability of about 61% to cut interest rates by 50 basis points today.
Some say that starting with a record cut of 25 basis points would be better because the economy is still doing well, and a cut of 50 basis points may be perceived as a panic.
But yesterday's US retail sales helped the dollar and bond yields regain some strength.
However it may end up being just a temporary response during the week. Does the Fed remain true to its contacts since Jackson Hole and go to cut interest rates by 25 basis points Or will he feel more comfortable looking for some insurance by lowering interest rates by 50 basis points ?
The press conference and Jerome Powell's speech will be one of the most important things today after the decision to clarify the Fed's economic forecasts for the coming period.
