Traders see good chance the Fed cuts again in December then skips in January
Published On Nov 7, 2024, 3:49 PM
Traders are anticipating an interest rate cut from the Federal Reserve in December, following a recent reduction in November. After trimming rates to a range of 4.5% to 4.75%, there's a 70% chance of another cut in December, but a 71% probability suggests the Fed may not cut again in January.
Stock Forecasts
XLF
Positive
If the Fed proceeds with the expected cut in December, this could lead to a positive market response as lower interest rates typically encourage borrowing and spending. However, the follow-up 'skip' in January suggests caution about future cuts, which might lead to volatility in rate-sensitive sectors.
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