Institution: The Fed may want to avoid sending the wrong signal by cutting interest rates sharply

The US Federal Open Market Committee (FOMC) will announce its interest rate decision later today. Market expectations for a 50 basis point rate cut by the Fed have stabilized in the 60%-70% range, Maybank analysts said in a foreign exchange research and strategy report. However, analysts said the FOMC may want to avoid sending the wrong signal to the market by cutting interest rates sharply, partly because it could cause panic. Analysts added that market participants are expected to focus on Fed Chairman Powell's press conference to understand the nuances of forward guidance on future rate cuts. (Jinshi)