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The fed funds futures market is currently assigning a more than 90% chance of a 100 basis point rate cut at the Fed’s March policy meeting. 

Last week, the central bank reduced borrowing costs by 50 basis points to a range of 1.00%-1.25%. The market expects the Fed to cut the target range to 0-0.25% at its March 17-18 policy meeting. Until Tuesday, the market was pricing in prospects of a 75 basis point rate cut. 

The dovish expectations have strengthened in Asia, possibly due to worsening of risk aversion. President Donald Trump on Wednesday announced a 30-day ban on foreign visitors from most of Europe, but failed to quell fears that the coronavirus is wrecking the domestic and global economy and fell short of expectations on the fiscal stimulus front. 

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