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الاقتصادية
Market Uncertainty Grows Before Fed Rate Decision
Before the upcoming Federal Reserve decision, traders are in a state of tension regarding the possibility of interest rate hikes. The swaps market indicates about a one-in-three chance that the Fed will increase rates by 25 basis points, although most forecasts suggest holding rates unchanged. Prominent voices, including experts who believe such a move would bolster the bank’s credibility in fighting inflation and eliminate the legacy of forward guidance—which has started to fade due to changes in Janet Warren’s policies of not setting a clear interest rate path—are calling for a rate increase. The market reflects increasing concern, with growing open interest in hedging against a sudden hike, and the divergence in officials’ expectations continues to create uncertainty that alarms investors about the future direction of monetary policy.
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