The sharp drop in the US Treasury bond yields and US President Trump’s aggressive call for “bigger and faster” rate cuts have ramped up the probability of a 50 basis points rate cut in September to 35% from 15% on Tuesday, according to the latest available data released by the CME Group’s FedWatch Tool.
The FedWatch Tool further shows that the probability of the Federal Reserve’s policy rate being 75 basis points lower in December from the current rate is now at 44%.
Heightened odds of Fed rate cuts seem to be weighing on the Greenback. At the moment, the US Dollar Index is down 0.15% on the day at 97.45.
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