Fed Rate Decision Approaches With Uncertainty

According to Odaily, as the Federal Reserve's rate decision draws near, the outcome appears increasingly uncertain. Data from the Chicago Mercantile Exchange (CME) indicates that in the past few hours, traders have become more evenly split between betting on a 50 basis point rate cut (currently about 55% probability) and a 25 basis point rate cut (45% probability). Earlier on Wednesday, a 50 basis point rate cut was favored with a 2:1 probability advantage. However, due to strong economic data, the more conservative option of a 25 basis point rate cut has gained more support. As the likelihood of a significant rate cut decreases, U.S. Treasury yields are rising. The yield on the two-year U.S. Treasury is currently at 3.657%, up from 3.59% at Tuesday's close.