During an interview with Bloomberg TV, St. Louis Fed President Bullard argued against a 50 basis points rate cut in July.
“Just sitting here today, I think 50 basis points would be overdone,” Bullard said. “I don’t think the situation really calls for that, but I would be willing to go 25.”
With the initial market reaction, the CME Group FedWatch’s rate hike probability of a 50 basis points rate cuıt in July dropped to 35% from 43% on Monday, lifting the US Dollar Index to a daily high of 96.36. Although the index retreated from that level and was last seen at 96.12, it still remains on track to snap the 4-day losing streak.
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