Economic news
Traders bet on second straight 50 bps Fed rate cut in November
2024.09.27 08:52
(Reuters) – Traders added slightly to bets the Federal Reserve will deliver a second 50-basis-point interest rate cut in November after a government report Friday showed inflation rose modestly in August, clearing the way for the central bank to focus on shoring up the labor market.
Interest rate futures contracts reflected about a 54% chance of a half-point cut in November, versus a still-hefty 46% chance of a quarter-point cut, and either way traders are betting the policy rate – now in the 4.75%-5.00% range – will be 75 bps lower by year end.
