Ebury: the Fed will later cut interest rates by 25 basis points this year will be a cumulative rate cut of 75 basis points
Global financial services firm Ebury said it expects the Fed to cut rates by 25 basis points later and hinted that further cuts would be gradual, which would provide some short-term support for the dollar.Matthew Ryan, market strategist at Ebury, said in a report, “A 50 basis point cut doesn't seem to be in the cards, and we don't think the Federal Open Market Committee will be ready to fully support market pricing of interest rates.” He said futures pricing for a 115-basis-point rate cut this year seemed overpriced. He said the Fed could cut rates by 25 basis points three times, in September, November and December.
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