Traders bet on another bumper interest rate cut by the Fed

finance
Created 9/23/2024
Updated 9/23/2024

Traders are betting on another significant interest rate cut by the US Federal Reserve in November, potentially following the recent half-point reduction. Markets are optimistic this could signal a "soft landing" for the economy, avoiding a recession while supporting growth and a stable labor market. Despite historical links between large rate cuts and recessions, investors believe this time could be different. Some analysts warn that aggressive cuts may hinder efforts to control inflation, especially with strong US growth and consumer spending. The Fed’s strategy is compared to its 1995 easing cycle, aiming for economic balance.

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