Fed's Potential Rate Cut May Trigger Market Reaction, Says Economist

According to Odaily, Johns Hopkins University economist Steve Hanke has indicated that the Federal Reserve's anticipated 25 basis point rate cut next Wednesday has already been priced in by the market. Hanke suggests that this could lead to a 'sell-the-news' event for risk assets. Hanke explained that the market's expectation of a 25 basis point cut means that the actual rate reduction might be underwhelming, potentially causing a 'sell-the-news' reaction. In contrast, a 50 basis point cut has not been factored in by the market. Should such a cut occur, it could drive the market upwards.