1. The Fed's rate cut decision could significantly impact interest rates, the dollar, and the bond market, with equities also affected over time. 2. Despite recent inflation data, there is a near 100% chance for a 25 bps rate cut, but the Fed should be cautious given rising inflation expectations. 3. If the Fed cuts rates, it should be the last cut unless inflation drops; otherwise, higher 10-year rates and a stronger dollar are expected.
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