Traders anticipate Fed"s significant interest rate cut soon

Traders are increasingly optimistic about the US Federal Reserve's potential for a significant interest rate cut in November, following a recent half-a-percentage-point reduction. This optimism is reflected in the market's assessment, which indicates a 53 percent likelihood of a similar cut occurring shortly after the US presidential election. The recent rate cut was part of a broader monetary easing strategy aimed at stabilizing the economy. Investors are hopeful that these measures will lead to a soft landing for the economy, alleviating fears of a recession in the United States. The Fed's actions are seen as a proactive approach to support economic growth and maintain market confidence during uncertain times. As the central bank navigates these challenges, the focus remains on balancing inflation control with the need for economic stimulus, particularly in the lead-up to the election. The anticipation of further cuts reflects a broader sentiment among investors that the economy can withstand current pressures without entering a recession, fostering a more positive outlook for the future.