finance

🔴BREAKING - Traders Raise Odds of 50-Basis Point Rate Cut to 68%

Traders have not been this divided on the outcome of the Fed’s next rate decision since before the financial crisis. Markets are now pricing in a 68% chance of a 50-basis-point cut, compared with 43% on Friday.

With just one day to go, whether Fed policymakers will cut rates by a quarter-point or a half-point is a wild card in U.S. interest rates markets. Excluding the Fed’s emergency cut in March 2020 at the start of the pandemic, that’s the highest level of uncertainty in interest-rate swaps markets for any decision by the U.S. central bank since 2007, according to data compiled by Bloomberg.