Analysts: The threshold for the Fed to cut interest rates by 50 basis points next week is high, and a sharp interest rate cut will do more harm than good

According to Golden Finance, Kieran Williams, head of Asian exchange rate at InTouch Capital Markets, said: "The threshold for a 50 basis point cut is very high, and core inflation may be unexpectedly significantly lower than expected in order to provide confidence to doves." Given the stickiness of service prices and the Fed's tendency to send out gradual signals, a sharp rate cut next week seems unlikely, but the data will affect the market's positive attitude towards pricing loose paths at the end of the year. "CityIndex senior market analyst Matt Simpson also said: "I think the current 50 basis points cut rate is more harmful to market confidence than good." In addition, the Fed may want to save face and will not completely succumb to Trump's will. "Market pricing currently reflects the expectation of three interest rate cuts in the next three meetings, and the Fed is in a good position to match these expectations well or increase the chance of a rate cut in 2026 - without being forced to cut interest rates by 50 basis points next week."