Bond Traders Eye Possibility of 50 Basis Point Fed Rate Cut After Inflation Data Following softer-than-expected inflation data, bond traders are increasingly betting on the possibility of a larger-than-usual 50 basis point interest rate cut by the Federal Reserve in September. This shift is evident in the federal funds futures market, particularly in October contracts, which have seen record trading volumes. While these contracts already fully price in a standard quarter-point cut for the September 18 meeting, the increased buying at higher price levels suggests growing expectations for a more aggressive move. Swap contracts now indicate a full quarter-point cut in September and a total of 60 basis points of easing by year-end, reflecting a significant change in market sentiment regarding the Fed’s monetary policy trajectory. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts US Budget Gap Widens 16% in First Four Months of Fiscal Year READ MORE Revisiting the 2024 Gold Price Predictions READ MORE Wall Street Watch: U.S. Regulators Set to Rein In Executive Bonuses Amid Financial Scrutiny READ MORE China Sees Rise in Fake Gold Scams Amid Bullion Investment Boom READ MORE U.S. Job Openings Decline in November, Indicating Labor Market Shift READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment