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Market now price in a 52% chance of a rate cut next month, down from 95.5% as investors speculate that lack of economic data might make the fed less inclined to cut rates
- Market expectations of fed interest cut in December have been declining, driven by comments from White House press secretary Karoline Leavitt who suggested that economic data that was due out during the government shutdown might never be released.
- Some investors think the lack of these data might make the fed less inclined to cut rates.
- Traders are now pricing in a nearly 52% chance of a rate cut next month, down from 62.9% a day ago and 95.5% chance a month ago.