The Federal Reserve is set to cut interest rates for the first time since 2020, with options of a 25 or 50 basis point reduction. Market sentiment leans towards a 50 bps cut, but expectations suggest a more cautious 25 bps reduction may be likely, reflecting mixed economic signals. The upcoming FOMC meeting will also provide insights through economic projections and the dot-plot chart, influencing market reactions, particularly in Forex and U.S. equities.
