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 Markets on Edge: Continuing Coverage of Regional Banking Crisis READ MORE WTI Nears $83 as Traders Respond to U.S. Economic Slowdown READ MORE JP Morgan Gold Traders go to Jail, while JP Morgan exits DoJ ‘Sin Bin’ READ MORE Year of the Dragon: Surge in Singapore’s Gold & Silver Sales | Chinese New Year 2024 READ MORE Housing Costs Defy Inflation Trends, Challenging Federal Reserve's Targets READ MORE Add a Comment Cancel replyYour email address will not be published.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