CME FedWatch: 84.6% Chance Say Outside Go Cut Rate for September
According to di CME FedWatch Tool, market dey put 84.6% chance say di Federal Reserve go cut interest rates by 25 basis points for dem September meeting, and 15.4% chance say rates no go change. Come October, di tool show say only 6% chance say rates go remain steady, 42.4% chance for cumulate 25 bp cut, and 51.5% chance for total 50 bp reduction. Traders for risk assets, including crypto market dem, suppose dey watch these changing rate cut chances cos e fit affect liquidity and asset prices.
Bullish
High chance say September go cut rate mean say monetary policy go easier and liquidity go increase. Normally, when Fed cut rate, e dey support risky assets and make capital flows enter equities and cryptocurrencies. As market don mostly price in 25 bp cut, crypto traders fit see better time as borrowing cost dey fall and risk appetite dey rise. Short-term wahala fit happen if outcome no follow expectation, but overall liquidity boost dey good for asset prices for middle and long term.