Small overview
1. Markets are almost fully convinced that a 25bp rate cut next week is locked in, with very little debate left around that move.
2. The outlook for 2026, however, is far murkier, both in terms of how rates will evolve and how much liquidity will sit in the system.
3. Powell will likely push back against the idea of back‑to‑back rate cuts rolling into early 2026, repeating the tone he used in October and highlighting the wide range of opinions inside the FOMC.
Instrument: USD | Sentiment: Neutral
