Markets are not happy now. This is because of different ideas. The US Federal Reserve made a choice.
Last week, the Fed lowered rates a little. The new rate is 3.50% to 3.75%. People want more cuts. They think the Fed will lower rates more.
New news about the economy is coming. US jobs numbers are out Tuesday. The Bank of England will say its choice too. These news will be important. They will change how people feel.
The Fed cut rates because jobs are slowing. Fed Chair Jerome Powell said jobs are important. So, November jobs numbers matter. This news will show how jobs are. It will change market prices.
Not all Fed people agree. Some wanted a bigger cut. Others wanted no cut. This shows it is hard for the Fed.
But investors think differently. They think the Fed will cut more next year. They expect more cuts than the Fed plans. Investors think there will be a cut by March.
The jobs report is very important. If jobs numbers are bad, markets will expect more cuts. The US Dollar might get weaker. If jobs are good, the Dollar might get stronger.
In Europe, the Bank of England will also decide. Many think it will cut rates too. This will add to lower rates everywhere.