CME Fed Watch Shows 90.7% Chance of 25 bps Rate Cut in September, October Outlook Mixed

BlockBeats reported on August 12 that CME FedWatch has updated its probabilities, showing an 82.5% chance for a 25bps cut in September and a revised outlook for October.

Summary

BlockBeats reported on August 12 that, according to CME FedWatch, there is now an 82.5% probability for a 25bps rate cut in September with a 17.5% chance for rates to remain unchanged. In October, the probabilities are 6.5% for rates remaining unchanged, 41.5% for a cumulative 25bps cut, and 52.0% for a cumulative 50bps cut.

Terms & Concepts
  • CME FedWatch: A tool provided by CME Group that gauges market expectations for Federal Reserve interest rate decisions.
  • Basis Point: A unit equal to 1/100th of a percentage point, commonly used to describe changes in interest rates.