Fed officials Bostic and Neel Kashkari both indicated that the Fed may implement two more 25bps rate cuts this year. However, the interest rate futures market appears more aggressive, with bets on a 50 bps cut in November nearly equal to those for a 25 bps cut.
Despite Powell stating last Wednesday that a 50 bps cut should not be considered normal, traders seem to interpret the Fed's stance differently. They generally believe the Fed is more dovish than it appears, leading to increasing expectations for a 50 bps cut in November.
Several Wall Street banks have raised their year-end target for the S&P 500 to 6000 based on this dovish outlook.
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