The market's focus will be entirely on the FOMC meeting early Thursday morning with various speculations and expert views stealing the attention of investors.
Among them is the view of a famous figure in the world of investors, namely Ray Dalio.
Ray Dalio who is the founder of the asset management firm, Bridgewater Associates also cast his views on the decisions that the Federal Reserve (Fed) will choose for their monetary policy.
Markets continue to puzzle over the total rate cut by the Fed by either 25 or 50 basis points for the September meeting.
Many see the Fed as likely to implement aggressive policy easing, but according to Dalio by assessing the overall economic situation of the United States (US), the Fed should have lowered interest rates at a low rate.
In an effort to maintain economic stability, the Fed should maintain high interest rates for the benefit of creditors for satisfactory returns.
However, if viewed from the perspective of the mortgage situation being bad and having a negative impact on many, then a cut of 50 basis points may be a better option.
Dalio sees the central bank's actions at this meeting, whether a cut of 25 or 50 basis points, will not make a difference in the long term.
Not only him, but the CEO of JPMorgan Chase & Co. Jamie Dimon also believes that interest rate cuts of either 25 or 50 basis points by the Fed are not expected to have a big impact.
The majority of the market expects the Fed to implement their first interest rate cut in more than 4 years after keeping lending rates at high levels for quite some time.
