$NASDAQ(.IXIC)$ According to the CME Group's FedWatch Tool, markets are currently pricing in a 65.4% chance of a 25-basis-point rate cut in December, as reported by Reuters. However, I disagree with this view. A rapid and substantial rate cut could risk reigniting inflation. The decision is still uncertain and will depend on how economic conditions unfold. Even if the Fed does implement a rate cut in December, it’s likely already priced into the indexes. Conversely, if they choose not to cut, the market could react negatively. It seems like a lose-lose situation. Ultimately, I still believe the Fed will not cut rates.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments