Expectations for a Fed rate cut rise to 43%, focusing on employment and inflation relationship
Publication Time:2024-09-13 20:57:09
According to recent analysis data, the possibility of the Fed cutting interest rates by 50 basis points next week has surged to 43%. This shift in expectation follows the market's interpretation of recent Consumer Price Index (CPI) and Producer Price Index (PPI) figures. These indicators have supported expectations for a mild performance of the Personal Consumption Expenditures price index (PCE) at the end of the month, sparking concerns among investors about the Fed's growing emphasis on the labor market. The Wall Street Journal further reported that, given officials' belief that inflation pressures have been contained and considering employment issues, they are contemplating more aggressive measures for monetary easing policies. Currently, the yield on 10-year US Treasury notes is steady at 3.657%, while the 2-year US Treasury note yield hovers around 3.598%.
rate cut
Federal Reserve
Inflation
market response
Employment
Expectation