Investors now peg greater than even odds that there will not be a single interest rate cut until after the November election, a market outlook that complicates President Joe Biden‘s reelection bid.
Just four months ago, investors were pricing in up to six interest rate cuts from the Federal Reserve in 2024, with most expecting that the first cut would have happened in March. But on Tuesday, as top Fed officials huddle in Washington, D.C., investors think the Fed will hold off until at least November.
Investors implied a nearly 52% probability that the Fed will hold rates steady during its September meeting and then would cut during its November meeting, which happens just days after one of the most politically charged presidential elections in modern history, according to the CME Group’s
Read more…
