Federal Reserve Chairperson Jerome Powell is due to deliver a key speech at the annual gathering in Wyoming on Friday evening Beijing time, as the latest higher-than-expected inflation data has prompted some traders to lower their expectations for a rate cut while still sticking to their judgment of a rate cut next month.
Ian Lyngen, head of U.S. interest rate strategy at BMO Capital Markets, said in a research note that as the market prepares for Powell's speech in Jackson Hole, the biggest risk facing U.S. Treasuries is that the Federal Reserve chairperson may pour cold water on the widely expected September rate cut.
At present, about 325,000 options positions (costing about $10 million) are expected to profit as much as $100 million if the Federal Reserve cuts interest rates by 50 basis points at the September policy meeting. In addition, the current market pricing shows that the probability of a 25 basis point rate cut at the September 16-17 meeting is about 80%. (Golden Ten)
Powell will speak on Friday evening, with some traders lowering their expectations for a rate cut
2025-08-20 02:23:59
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