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Traders have reduced to zero the expectation of the Federal Reserve making another major rate cut before June next year

Traders have reduced to zero the expectation of the Federal Reserve making another major rate cut before June next year

Bitget2024/10/14 12:40

According to data from CME Fedwatch, after the Federal Reserve cut interest rates by 50 basis points in September, the federal funds futures market expects a surge to 77% possibility of further cuts by at least 175 basis points or more by June next year.

Traders now believe that the likelihood of another significant rate cut during this period has returned to zero. The Federal Reserve's past forecasts have always been poor. Skeptics including Wall Street Journal columnist James Mackintosh pointed out that there is widespread disagreement among Fed policy makers about where interest rates will ultimately settle.

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