NewsBreak: Chance of October Fed Cut Tops 90%
Investing.com
Published Oct 03, 2019 12:17PM ET
Investing.com - The implied chance of the Federal Reserve cutting rates this month jumped above 90% Thursday following another weak economic indicator. The ISM’s services measure hit a three-year low for September, which followed a 10-year low in its manufacturing index earlier this week. Chances of a rate cut were below 50% at the end of last week.
- The fed funds futures are now pricing in a 91.9% chance that the Fed cuts its benchmark rate to the range of 1.5% to 2% from 1.75% from 2%, according Investing.com’s Fed Rate Monitor Tool. Expectations of a cut topped 75% in the previous session.
- The ISM non-manufacturing PMI fell to 52.6 for September from 56.4 in August.
- The PMI fell more than expectations of analysts for a drop to 55, according to forecasts compiled by Investing.com.
- The 2-Year Treasury yield, a closely watched measure of short-term rate expectations, sank to 1.382% to 1.484%.
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Written By: Investing.com
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