- Wall Street expects the Fed to cut rates by 0.25% next week, though some are speculating Jerome Powell could deliver a “jumbo” 0.5% move, given how weak recent labor market data has been. Global markets and U.S. S&P 500 futures rose on expectations of cheaper money, but there are still two more rounds of inflation data prior to the Fed’s call.
S&P 500 futures are up 0.25% this morning as investors, having digested grim data from the U.S. labor market last week, feel that a 0.25% cut in interest rates from the Fed is locked in. The talk now is whether U.S. Federal Reserve chairman Jerome Powell will surprise the markets with a “jumbo” 0.5% cut, or opt instead for a series of 0.25% cuts month by month.
