Traders Anticipate Fed Rate Cut Amid Cooling Inflation
- Over 71% of traders are betting on a Fed rate cut of 25 basis points in December.
- The current federal funds rate is set between 3.75% and 4% following an October cut.
- U.S. inflation data shows signs of steady cooling, boosting confidence for further cuts.
- Chicago Fed President and other officials express caution about additional cuts to control inflation.
- Andrew Brenner predicts a December rate cut but warns that a government shutdown could impact this decision.
The expectation of a Fed rate cut is seen as a bullish trigger for risk assets like cryptocurrencies, with traders reacting positively to softer U.S. CPI data from last month.
With over two-thirds of traders anticipating a rate reduction, the market remains optimistic about potential easing measures before year-end.(Source)
