Will the Fed cut the rate to 25 bp at the next meeting?

[Zerologic]

Investors may now be waiting for the Fed's next policy regarding interest rates. After previously the Fed cut interest rates to 5.0%, many analysts predicted that gradually the Fed would move towards normalization so that interest rates would fall to normal.

Previous US jobs data had led to hopes of the Fed cutting interest rates by 50 bp, but over time, those hopes faded, and now according to the FedWatch tool, the probability of the Fed cutting interest rates by 25 bp is 97.5% greater than the unchanged interest rate forecast.

 

[Xavier1]

Investors are closely watching the Fed's next policy decision on interest rates. After the Fed's recent cut to 5.0%, many analysts expected gradual normalization. While initial US jobs data fueled hopes of a 50 bp cut, those expectations have since diminished. Currently, the FedWatch tool shows a 97.5% probability of the Fed reducing rates by 25 bp, with a much lower chance of keeping rates unchanged.