Wells Fargo Keeps Forecast for Fed Rate Cut of 50 Basis Points
Publication Time:2024-09-11 20:07:08
Economists at Wells Fargo in their recent report stated that although the employment report for August did not provide enough information to decide between a 25 basis point or 50 basis point cut, they still stand by their prediction for a 50 basis point cut. However, there is differing opinion in the market with fluctuations in federal funds futures reflecting this uncertainty. Last Friday, the market was confused by remarks made by Fed Governor Waller after the release of the jobs data, causing the futures prices to swing in both directions. Prior to this, traders had anticipated a 50 basis point cut in September with a probability of 79%, but this expectation dropped to 71% following reassessment of the likelihood of a conventional 25 basis point cut.
Federal Reserve
Wells Fargo
Interest Rate Cut
Employment Report