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NewsBreak: October Fed Rate Cut Priced In After Weak ISM PMI

NewsBreak: October Fed Rate Cut Priced In After Weak ISM PMI

Oct 01, 2019

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The fed funds futures market now predicts the Federal Reserve will cut rates by a quarter point this month following weak manufacturing data out this morning.

  • The market is pricing in a 57.7% chance of an October cut of 25 basis points, according to ’s Fed Rate Monitor Tool. Yesterday the odds stood at 42.8%.

    • The Institute of Supply Management said its manufacturing PMI dropped to 47.8 in September, the lowest index reading in 10 years, from 49.1 in August. Economists were predicting a rise to 50.4.

  • President Donald Trump blamed the Fed for the weak numbers, tweeting that it had allowed the dollar to appreciate with rates too high and that the Fed doesn’t “have a clue”.

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