79.1% Chance of Federal Reserve Rate Cut in September, Says CME FedWatch
CME FedWatch data indicates a strong likelihood of a 25 basis point rate cut by the Federal Reserve in September, with probabilities for October showing a mix of potential rate cuts and no change.
Summary
CME’s FedWatch tool reports a 87.4% probability of a 25 basis point rate cut by the Federal Reserve in September, with a 12.6% chance of no change. For October, the probabilities show a 45.8% chance of a cumulative 25 basis point cut and a 48.6% chance of a cumulative 50 basis point reduction.
Terms & Concepts
- CME FedWatch: A tool from the Chicago Mercantile Exchange (CME) that tracks market expectations for Federal Reserve interest rate changes based on futures market pricing.