Institution: The Federal Reserve may hope to avoid sending wrong signals by significantly cutting interest rates

The Federal Open Market Committee (FOMC) of the United States will announce its interest rate decision later today. Analysts from Malayan Bank stated in a foreign exchange research and strategy report that market expectations for a 50 basis point cut by the Fed have stabilized within the range of 60%-70%. However, analysts suggest that FOMC may want to avoid sending wrong signals to the market through substantial rate cuts, partly because it could cause panic. The analysts added that market participants are expected to focus on Fed Chairman Powell's press conference to understand subtle differences in forward guidance before future rate cuts.