Traders bet big on Fed moving into rescue mode

Quick Summary:

New York: Bond traders are piling into bets that the US economy is on the verge of deteriorating so quickly that the US Federal Reserve (Fed) will need to start easing monetary policy aggressively to head off a recession.

Futures traders are pricing in roughly the equivalent of five quarter-point cuts through the end of the year, indicating expectations for unusually large half-point moves over the course of its last three meetings.

At the end of 2023, bond prices also surged on conviction that the Fed was poised to start easing policy, only to give back those gains when the economy kept exhibiting surprising strength.

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Article Details

Category: EconomyBusiness

Markets: MalaysiaCanada

Topics: Recession Fed /Business/Business News Economy Rescue Interest rate Policy Bonds

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-08-06 @ 07:00:00 (7 hours ago)

News Timezone: GMT +8:00

News Source URL: thestar.com.my

Language: English

Article Length: 737 words

Reading Time: 5 minutes read

Sentences: 23 lines

Sentence Length: 33 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © The Star

News ID: 21946033

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Main Topics: EconomyBusiness

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