Analysis: Fed's 25 basis points rate cut in September could lead to a "sell-off news" event for risk assets

Steve Hanke, an economist at Johns Hopkins University, said a possible 25 basis point rate cut by the Federal Reserve next Wednesday had been priced in by the market and could lead to a "sell-news" event for risk assets. Steve Hanke said the market had already expected a 25 basis point cut, meaning the actual rate cut could disappoint, leading to a "sell-news" reaction in the market. By contrast, a 50 basis point cut was not factored in. If it did happen, it could push the market higher.