Market Speculation of 50 Basis Point Fed Rate Cut in September Driven by CPI Expectations
Publication Time:2024-08-14 19:46:08
On Wednesday evening, the world's largest bond market witnessed a resurgence of bullish bets, indicating that investors are gearing up for further increases following the release of CPI data. The expectation is that the CPI data will show sustained declines in price pressures, reinforcing the market's anticipation of more aggressive interest rate reduction actions by the Federal Reserve. In this context, traders hold differing views on the Federal Reserve's rate decision in September, with some favoring a 25 basis point cut while others predict up to 50 basis points. Based on swap trading data, the market widely expects the Federal Reserve to reduce rates by 36 basis points in September. Overall, the market generally anticipates a continued series of rate cuts from the Federal Reserve in the near future, particularly through the remainder of 2024, with the possibility of reducing rates by around one percentage point.
rate cut
Federal Reserve
Inflation Data
CPI
Bond Market