Traders predict Fed to cut rates by 50bps in November due to modest inflation increase.

From Investing.com: 2024-09-27 09:32:19

Traders expect a 50-basis-point rate cut by the Federal Reserve in November after August’s modest inflation rise. Futures show a 54% chance of the cut, totaling 75 basis points by year-end. Citi strategists also predict a 50-basis-point cut in November depending on upcoming data, particularly the jobs report. While unemployment remains low, focus shifts to the PMI employment components. Fed Chair Powell sees the initial cut as readiness to act if needed, potentially slowing to 25bp per meeting if unemployment stabilizes but recent data may prompt a quicker pace of rate cuts. PCE price index rose 0.1% in August with 2.2% annual inflation. Core PCE rose 0.1% with a 2.7% year-over-year increase, in line with forecasts.



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