The Fed will cut interest rates by 50 basis points this month? Swap contracts show a one-third probability, and the market direction suddenly changed!
As the signs of economic slowdown become more obvious, interest rate option traders are increasing their bets on the possibility of the Fed cutting interest rates by 50 basis points this month. Swap contract data show that this probability has risen to one-third, reflecting the market's deepening speculation that policymakers will take radical actions to avoid a recession.
Priya Misra, portfolio manager at JPMorgan Asset Management, pointed out: "The slowdown in the labor market has attracted the attention of the Federal Reserve. Given the current benchmark interest rate of 5.25-5.5%, and the obvious signs of economic slowdown, the initial 50 basis point rate cut is completely reasonable."
In this environment where monetary policy lags and the path is changing, investors are holding their breath and waiting. The Fed's next move may bring huge fluctuations to the global market!
The interest rate cut is on the rise again, and the market is about to usher in a new chapter. Pay attention to Boshi and seize every opportunity of this financial storm!
