Next week on September 18, the Fed will detonate the interest rate cut bomb, and market expectations have surged!
With the recent easing of inflation and rising unemployment in the United States, the Fed is under pressure to cut interest rates more significantly. Market expectations are rising rapidly, and everyone is speculating whether the Fed will take more aggressive interest rate cuts in next week's decision.
According to CME data, the market currently believes that the Fed has a 59% probability of a 25 basis point rate cut, and the probability of a 50 basis point rate cut is as high as 41%.
This change is very different from market expectations after the release of the US consumer inflation report on Wednesday, when everyone almost unanimously believed that the Fed would choose a moderate 25 basis point rate cut. This drastic change in expectations may cause drastic market fluctuations and deserves close attention!
