Economist Steve Hanke from Johns Hopkins University has pointed out that the market has fully anticipated the Federal Reserve’s possible 25 basis point interest rate cut next Monday (at the September meeting), and believes this could lead to so-called 'sell on rumor' behavior. Typically, this refers to situations where markets react negatively after responding to significant announcements, even when the result aligns with expectations. Hanke explains that since the market already expects a 25 basis point cut, the actual outcome might be less favorable than expected if the Fed does implement it. In contrast, for a larger 50 basis point cut, the market has not been sufficiently anticipated, and may respond positively to this unexpected move. However, Hanke stresses that even if there is a 50 basis point cut, its positive impact on the market may not be as significant as expected, as investors may have already largely priced in this possibility. Overall, regardless of the final interest rate cut amount, it is likely to cause market volatility, particularly for risk assets sensitive to interest rates.