ByTy Roush,
Forbes Staff.
The probability of an interest rate cut next month doubled on Friday, after New York Federal Reserve President John Williams said he sees room for a reduction in the “near term,” raising prospects among investors as waning hopes have pulled down stocks in recent days.
“I still see room for a further adjustment [to interest rates] in the near term” to adjust U.S. monetary policy to “the range of neutral,” said Williams in prepared remarks Friday at a conference hosted by the Central Bank of Chile.
Since Williams’ speech, markets have priced in odds of 75.1% for a 25-basis-point cut to interest rates to a range of 3.5% to 3.75%, after the probability dropped below 40% on Thursday, according to CME’s FedWatch tool.
