Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Expectations Fall That the Fed Will Cut Interest Rates This Week 

Published 09/17/2019, 05:17 AM
Updated 09/17/2019, 09:25 AM
© Reuters.

© Reuters.

Investing.com - A rate cut at this week's Federal Reserve policy meeting is no longer a done deal, as surging energy prices, trade progress and upbeat retail data have all undercut the arguments for easier policy.

Expectations that the central bank will lower its benchmark overnight rate remain, but chances seem to be growing that this could be the last one, according to Investing.com’s Fed Rate Monitor Tool.

Traders priced in a 35.4% chance that the Fed will leave rates unchanged at a two-day meeting that concludes on Wednesday, while 64.6% believe rates will be lowered by 25 basis points. Last week, the implied probability of a cut had been 94.6%.

The shift in expectations has come as oil prices surged following attacks on Saudi Arabian oil installations at the weekend, and rising inflation numbers last week. Meanwhile, trade progress between the U.S. and China have also dampened rate cut expectations, as signs that both sides want to avoid further escalating the dispute reduce a key risk to the U.S. economic outlook.

Latest comments

Beware, fed will cut rate, but the usd will rebounce after that
Take a short waves.
FED, increase them pls
Time for the FED to be independant again and not cut at all.
time to go back to the gold standard and eliminate the den of thieves
The Fed creation was never intended to be politicized by the white house. If this is what you want, get rid of Fed and give the person in the White House a crown.
Fed need to raise interest 3-4 times as Trump said its economy is so strong
Why be satisfied with an A if we can get A+++?...
I'm 100% with you. They should raise, so the economy doesn't get worse since the economy is good, we have a good reason to rase.
The trend started last week(20% vs 80), due to increased inflation CPI 2,4% increasing significant.
I understand your point... But the Fed can't take chances like that. They need to cut... To prevent uncertain future events damage
They will probably raise cut. The economy is so good now, as Trump says.
Nonsense. You state the false narrative propagated by the banks who’s only motivation is greed. The Federal Reserve is not responsible for mitigating socio-political issues that don’t even exist. There is zero economic need for a rate cut at this juncture
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.