Market Predicts 50 Basis Point Fed Rate Cut as Dollar Declines: Insights from Swissquote Bank

On September 17, COINOTAG News reported that the US dollar depreciated amid prevailing market sentiments suggesting a higher likelihood of the Federal Reserve enacting a 50 basis point interest rate cut this week, rather than a 25 basis point reduction. According to LSEG Refinitiv data, there’s a 70% probability that such a cut will occur. In her report, Swissquote Bank analyst Ipek Ozkardeskaya stated, “I maintain that a 25 basis point cut remains optimal given the current, non-alarming economic data. Nonetheless, the Fed may seek to avert market discontent with a mere 25 basis point cut, especially as some Democrats are advocating for a more aggressive 75 basis point reduction.”