Traders Stuck Between Two Fed Options After Williams Kerfuffle
- Futures show market leaning slightly toward quarter-point cut
- Odds of a half-point move this month have increased though
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The rollercoaster-ride in markets spurred by comments from Federal Reserve Bank of New York President John Williams has revved up the debate about how big the central bank’s widely expected rate cut this month may be, even as futures are once again leaning slightly toward the smaller option.
Short-end U.S. rates sank late Thursday and futures indicated that a half-point cut at the July 30-31 Fed meeting was seen as more likely than a quarter-point move after Williams said in a speech that it pays to act quickly in times of economic distress.