What's priced in for the Federal Reserve now

Author: Adam Button | Category: Central Banks

The market is looking at a cut

Powell frequently emphasized that the Fed is neutral, patient and has no bias but the market has sniffed out a cut. The Fed funds futures curve is pricing in a 47.1% chance of a cut in January 2020.
The market is looking at a cutHere is how it looked a day ago:
what's priced in fed fund futures
That's a pretty big move.

I though Powell would be more optimistic on the domestic economy. It wasn't that big of a surprise that he was dovish and worried about China and Europe but the caution domestically was more dovish than anticipated.

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