🇺🇸 Fed Rate Cut Looms as Markets Brace for Impact
Markets are betting almost unanimously that the U.S. Federal Reserve will lower rates at its meeting this week. CME’s FedWatch tool puts the odds of a 25-basis point cut at 96.4%, with only a slim 3.6% chance of a deeper move.
The Fed is trying to walk a fine line: cooling inflation without tipping the economy into a deeper slowdown. A cut would reduce borrowing costs, boosting equities and rate-sensitive sectors like tech and housing. On the flip side, the U.S. dollar may soften, with ripple effects across global markets, including crypto liquidity flows.
Traders are already eyeing October. Current market pricing sees an 81% chance of a larger cumulative 50-point easing by then, showing that Wall Street expects a steady path of cuts rather than aggressive shocks.
What do you think ? will the rates be lower than expected ?