NEW YORK, Sept 17 (Reuters) – Futures on the federal funds rate, which measure the cost of unsecured overnight loans between banks, further raised the odds on Wednesday that the Federal Reserve will deliver another interest rate cut at the October meeting, with an 86% probability.
That was 71.6% before the Fed’s decision on Wednesday to cut interest rates by 25 basis points to the 4.00%-4.25% range. In a statement, policymakers indicated it will steadily lower borrowing costs for the rest of this year, as policymakers responded to concerns about weakness in the job market
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The remaining odds of about 13-14% are betting the Fed will pause.
U.S. rate futures also factored in about 70 basis points in rate cuts in 2025 after the Fed statement. The Fed’s rate forecast or the so-called
US rate futures lift chances of further easing in October after Fed cuts rates
