Glodon July 31｜ Mitsubishi UFJ Financial Derek Halpenny, head of research at the group, said in a report that the Fed's communication at Wednesday's policy meeting will be important not only for the reaction of bond yields, but also for the reaction of overall market conditions. With risk aversion in the market and the market expecting the Fed to cut interest rates by 25 basis points at the September meeting, Fed Chairman Powell will need to provide some communication that suggests that the FOMC is moving in the direction of a September rate cut. MUFG expects Powell to deliver on this promise, and it would be a big mistake if he unexpectedly communicates hawkishly.

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