Markets stayed calm as investors focused on a likely 25 basis point rate cut at the upcoming Federal Reserve meeting.
FedWatch indicates an 87% chance of a 25 basis point cut, reflecting investor optimism.
Implied volatility dropped, showing less concern about short-term market moves ahead of the Fed’s decision.
Despite economic fluctuations and the U.S. presidential debate, financial markets including the tightly-aligned crypto market have remained relatively calm this week. Investors are laser-focused on the upcoming Federal Reserve meeting, where a rate cut is widely anticipated.
Anticipation of a 25 Basis Point Rate Cut Grows
The CME Group’s FedWatch tool shows an 87% probability that the market is betting on a 25 basis point rate cut at the September 18th meeting. This marks a noticeable jump from earlier this week when the odds were a bit lower. Conversely, the chance of a more aggressive 50 basis point cut has dropped to just 13%.
The consensus among investors regarding a rate cut points to growing optimism that the Federal Reserve will relax its monetary policy to spur economic growth and try to ward off a potential recession. Investor sentiment…
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