Askume, Sept 19 – Economic data showed an unexpected drop in unemployment insurance claims, and traders speculated on Thursday that the Federal Reserve’s next interest rate cut would come as early as Wednesday.
Interest rate futures contracts currently show a roughly 30% probability that the Fed, which cut interest rates by half a percentage point on Wednesday, will cut interest rates for a second time in November. The market-based probability of a 25 basis point rate cut in November is now about 70%, up from about 65% before the data was released.
