Goldman Sachs sees 15% chance of a 50bp Fed rate cut in July
|Analysts at Goldman Sachs see only 15% probability of the US Federal Reserve cutting rates by 50 basis points on July 31. The investment bank, however, puts the probability of a 25 basis point rate cut at 75%.
Further, it expects the Fed to deliver one more rate cut in September.
The market pricing is now implying around 30 basis points of easing on 31 July.
Fed's Chair Powell, during his testimony to the House Financial Services Committee on Wednesday, said “many FOMC participants saw that the case for a somewhat more accommodative monetary policy had strengthened.”
Markets seems to have taken Jerome Powell’s testimony as a signal that the Federal Reserve is fully on board for rate cuts. This is evident from the six basis point drop in the US 2-year treasury yield.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.