Markets see Fed cutting rates by 75 bps in March
Markets are certain that the Untied States Federal Reserve will decide to cut interest rates further in March, despite the central bank’s unexpected rate cut which was announced earlier this week in response to the coronavirus outbreak and its impact on the global economy. Chances of a 75 basis point rate cut to 0.25%-0.5% are now at 75.9%, according to CME Group’s FedWatch Tool as of 6:04 am ET on Friday. Meanwhile, chances of a reduction in the fed funds rate for 50 basis is seen as likely by 24.1%.
Additionally, a majority of investors, 56.1%, expect rates to be cut to 0%-0.25% when the Federal Open Market Committee (FOMC) meets on April 29.
Early on Friday in the US, the benchmark 10-year Treasury yield dropped to new all-time lows and the Dow Jones Industrial Average fell 700 points in premarket trade.
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