Is the Fed about to take major action? The market is betting on a 50 basis point rate cut, causing a frenzy in the technology and cryptocurrency markets!
This week, enthusiasm in the technology, cryptos, and junk bonds markets has once again heated up, boosting the confidence of fund managers, as they expect policymakers to potentially rare cut interest rates by half a percentage point.
Local Bonds To Tapper Down Ahead Of Fed's Rate Cut
On the eve of the September interest rate meeting, a report ignited expectations of a 50 basis point interest rate cut, causing stocks, gold, and bitcoin to all rise.
"New Federal Reserve Communications Agency" article stated that Federal Reserve officials are considering whether to cut 25 or 50 basis points. Futures linked to the Federal Reserve's policy rate indicate that traders on Friday expect the probability of a 50 basis point rate cut by the Federal Reserve to rise to 47%, with a close to 50/50 chance, while the probability estimated on Thursday was only 28%.
Expectations of interest rate cuts becoming a "reassurance pill"! Safe-haven funds are flowing into bonds and gold.
Global investors sold stock funds for the second consecutive week in the week ending September 11th.
Treasury Yields Drop as Traders Put Biggest Fed Rate Cut in 16 Years Back on the Table for Next Week
The suspense of the Fed interest rate cut will be revealed next week! The interest rate dot plot and the expected unemployment rate are eagerly awaited by everyone.
According to a survey of economists, the Fed is very likely to cut interest rates by 25 basis points at the next meeting and the following two meetings.