Market Anticipates 50 Basis Point Rate Cut by the Fed This Month
Publication Time:2024-09-05 08:11:07
Golden Finance reported that interest rate option traders have increased their expectations of a 50 basis point rate cut by the Fed this month, indicating strong market concern over policymakers' potential proactive measures to address potential economic challenges. Currently, according to swap contract analysis, the market considers the probability of the Fed cutting rates by 50 basis points in this month to be nearly one-third. Options linked to the secured overnight financing rate (SOFR) show a significant increase in open interest for call contracts maturing on September 13th, which coincides with five days before the FOMC's interest rate statement. If this Friday's non-farm employment report and next week's consumer price index (CPI) data indicate a slowdown in the job market and inflation trends, it will provide the Fed with an even more compelling reason to accelerate easing policies, thus supporting the value of these positions.
Fed
rate cut
market anticipation