The Role of Expectations in Financial Markets [Interest Rate Expectations]

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  • Math

  • High School

  • 12th grade

  • Calculus and Advanced Math Concepts

  • English

Author's Instructions

Expectations in financial markets are a key driver of price volatility before the actual data is released. In fact, traders buy or sell based on their market expectations and forecasts for future data, and this behavior often drives market fluctuations.