Traders anticipate multiple rate cuts following inflation report
- Expectations for at least 4 Fed rate cuts in 2024 surge on inflation report
- Traders now expect up to five rate cuts in 2024
- Probability of interest-rate hike before year-end shrinks to virtually zero
- Futures traders pricing in 100% probability of no rate change after December policy meeting
- Expectations for a fifth rate cut more than double to nearly 23%
Expectations for another interest-rate hike from the Federal Reserve before the end of the year have shrunk to virtually zero, while traders now expect up to five rate cuts in 2024 following the release of an October inflation report. Data from the CME Group show futures traders are now pricing in virtually 100% probability that the Fed will leave interest rates on hold after their final policy meeting of the year next month. Meanwhile, they are pricing in at least four rate cuts by the end of the Fed’s December 2024 policy meeting, with expectations for a fifth cut more than doubling to nearly 23%, according to the CME’s FedWatch tool.
Factuality Level: 8
Factuality Justification: The article provides specific data from the CME Group to support its claims about the expectations for interest rate hikes and cuts by the Federal Reserve. The information is based on futures traders’ pricing, which adds credibility to the article. However, it would be helpful to have more context about the reasons behind these expectations and any potential factors that could influence the Federal Reserve’s decisions.
Noise Level: 8
Noise Justification: The article provides information on expectations for interest rate hikes and cuts by the Federal Reserve. However, it lacks evidence, data, or examples to support these claims. It also does not provide any analysis or insights into the long-term trends or consequences of these decisions. Overall, the article contains mostly repetitive information and lacks scientific rigor or intellectual honesty.
Financial Relevance: Yes
Financial Markets Impacted: Federal Reserve, interest rates
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses expectations for interest rate changes by the Federal Reserve, which can have an impact on financial markets and companies.
Public Companies: CME Group (CME)
Key People:
Reported publicly:
www.marketwatch.com 
