The Fed's upcoming rate decision isn't as clear as market pricing suggests

Elmar Voelker, an analyst at LBBW, said in a report that the interest rate decision at the Federal Reserve's meeting next week is not as clear as forward rates indicate. "In our view, the recent release of U.S. macroeconomic data does not provide a clear template for the upcoming interest rate decision," said the senior fixed income analyst. Voelker said that from the perspective of bond market participants, "a rate cut in December and a pause in January is not much different than "a pause in December and a rate cut in January is implied." LSEG data shows that the money market believes that there is a 94% probability that the Federal Reserve will cut interest rates by 25 basis points next week, while there is a 6% probability that interest rates will remain unchanged. (Jinshi)