Fed Chairman Jerome Powell said the recent 0.5% rate cut should not be seen as a sign that the next rate cut will be that big. Instead, rate policy will gradually move to a more neutral state over time. However, we are not following any predetermined course.

Following the Fed speech, the CME futures market is currently leaning towards a 0.25% drop (57.9% cut in November) rather than a 0.5% (42.1%) drop.