Report: The Federal Reserve is expected to confirm the market's expectations for a rate cut in September

ChainCatcher news, Derek Halpenny, head of research at Mitsubishi UFJ Financial Group, stated in a report that the communication from the Federal Reserve during Wednesday's policy meeting is not only important for the reaction of bond yields but also for the overall market conditions. With increased market risk aversion and expectations that the Federal Reserve will cut rates by 25 basis points at the September meeting, Fed Chair Powell will need to provide some communication suggesting that the FOMC has moved in the direction of a rate cut in September. Mitsubishi UFJ Financial Group expects Powell to fulfill this commitment, and any unexpected hawkish communication would be a significant mistake. (Jin Shi)