Since 1990, the stock market does this every time in the trading week before Fed starts cutting rates

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Since 1990, the stock market does this every time in the week ahead of a Fed rate cut.

Market traders are 100% confident that the Federal Reserve will vote for an interest-rate cut at the end of July.

Speculation that the Fed might double up on the cut and make it 50 basis points rather than 25 basis points increased after a speech by New York Fed President John Williams last week, who said that policymakers need to act quickly when growth slows. The NY Fed walked back those comments shortly after the speech, saying it was a historical analysis rather than an intended policy statement.

It would be the Fed's first rate cut in more than a decade, when the central bank slashed rates to virtually zero as a result of the Great Recession.

 

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