Summary
- The Chicago Mercantile Exchange FedWatch indicated a 91.2% probability of a Fed rate cut in September.
- This is a significant increase from the previous figure of 75%.
- Fed Chair Powell said that this outlook comes as the labor market is cooling and inflation is easing.
The US central bank, the Federal Reserve (Fed), is now seen as having over a 90% chance of cutting the benchmark interest rate in September.
According to the Chicago Mercantile Exchange (CME) FedWatch on the 22nd, interest rate futures traders are reflecting a 91.2% probability that the Fed will cut the benchmark rate at next month’s FOMC meeting. This is up from the previous 75%.
Earlier that day, Jerome Powell, Chair of the Fed, stated in his Jackson Hole speech that labor market overheating is cooling, and that while inflation remains somewhat high, it has dropped significantly from its peak after the pandemic.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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