Traders are rapidly piling into bets that the Federal Reserve will slash interest rates in December, a sharp reversal from just days ago when most expected the central bank to keep borrowing costs unchanged amid inflation concerns. Why Have Expectations Flipped Again?Just a week ago, markets were evenly split on whether the Fed would cut or hold rates at its December meeting.By Wednesday last week, odds of no change surged to nearly 70%, with investors growing skeptical that the Fed had seen enough cooling in inflation and labor markets to justify easing.But the narrative flipped last Friday and then again Monday.New York Fed President John Williams and Fed Governor Stephen Miran hinted at a dovish stance late last week, followed by stronger signals from Governor Christopher Waller and San Francisco Fed President Mary Daly on Monday. Their comments suggested growing concern over the labor market and reinforced the likelihood of monetary easing."The labor market is soft. It's continuing to weaken," Waller said on Fox Business' “Mornings with Maria,” adding that inflation is expected to continue easing and that private sector ...Full story available on Benzinga.com
Traders Flood Fed Rate-Cut Bets After Dovish Talks: 'Wild Volatility,' El Erian Says
