Fed funds futures extended their gains, implying an 89% chance that the Fed will cut rates by 50 basis points in September.
Fed funds futures prices show the Fed will cut rates by 125 basis points by the end of 2024.
Market conditions showed that the US federal funds rate futures continued to rise, suggesting that the probability of the Federal Reserve cutting interest rates by 50 basis points in September is 89%.
There is a disagreement between the financial markets and the Federal Reserve regarding the ultimate direction of the federal funds rate. The former Chairman of the New York Federal Reserve has sided with the market this time. Click to view>& Gt;
Economists say that in the post World War II era, the reduction in the federal funds rate by nearly 150 basis points only occurred in one specific scenario... click to view>& Gt;