The probability of a 50-basis point rate cut by the Federal Reserve rose on Thursday after Federal Reserve Bank of New York President John Williams said the US central bank should take swift action when faced with adverse economic conditions. His comments led investors to believe that a more aggressive rate cut is underway when the Fed meets on July 30-31. However, a statement from the NY Fed stated that Williams’ speech was an academic one based on research and not about potential action at the upcoming Federal Open Market Committee (FOMC) meeting. The clarification from the NY Fed trimmed the probability of 50 basis point rate cut to below 20% from about 65%. In such time of uncertainty, messages from the Fed needs to be more coordinated and aligned to prevent shocks in the markets. The sentiment was even further dented on Friday after Iran captured the British oil tanker, increasing tensions in the already volatile region.