Gareth Soloway: Fed rate cut odds soar to 75 percent

Gareth Soloway: Fed rate cut odds soar to 75 percent
@GarethSoloway: Fed rate cut odds soar

Federal Reserve signals have significantly impacted the markets, according to Gareth Soloway. The Fed Watch Tool is now indicating a 75% chance of a rate cut in December, a sharp increase from just 32% last week.

This shift in odds has fueled a market rally witnessed last Friday and continuing into today. Soloway suggests that investors and markets remain heavily reliant on easy monetary policy to sustain momentum.

These developments come amid renewed debate over the sustainability of the current rally, a topic explored when Soloway warned that heightened optimism could give rise to market exuberance concerns. The shifting probability of Federal Reserve action also recalls last month’s surge in the Empire State Manufacturing Index, which notably influenced rate cut expectations and underscored the market’s sensitivity to economic data.

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