Skip to main content

25bp rate cut may not go down well in the markets

The Fed is likely to cut interest rates by 25bp at next week’s FOMC meeting. Despite the stronger-than-expected GDP data released on Friday, however, fed funds futures still put the odds of a larger 50bp cut at close to 20%. The upshot is that, after a week when the ECB disappointed the markets, the Fed risks prompting a similar reaction, particularly if one or more hawks dissent.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access