Wells Fargo: Stick to the expectation of a 50 basis point rate cut by the Federal Reserve

Odaily Odaily News Wells Fargo economists wrote in a recent report: "The August employment report does little to resolve the debate over whether there will be a 25 basis point or 50 basis point rate cut this month. We stick to our expectations of a 50 basis point rate cut, but acknowledge that the possibility of a 25 basis point rate cut is real." Last Friday, federal funds rate futures fluctuated in both directions as the market was confused about how to interpret the remarks made by Fed Governor Waller after the data was released. Traders briefly expected a 79% chance of a 50 basis point rate cut by the Fed in September, but then they switched to a 71% chance of a regular 25 basis point rate cut. (Jinshi)