Speculation of a significant rate cut by the Federal Reserve Board (FRB) continues to increase, with former president of the NY Federal Reserve making new comments.

September 17, 2024, 2:11 AM GMT+9 (excerpt)

In the short-term financial markets on the 16th, the probability of the Federal Reserve (FRB) deciding on a significant interest rate cut of 0.50 percentage points at the meeting on the 17th-18th rose further, reaching about 60%, up from 45% at the end of the previous week.
Against the backdrop of speculation of a significant rate cut by the Federal Reserve (FRB), the dollar/yen fell below 140 yen in the foreign exchange market, temporarily dropping to 139.58 yen.

The majority of people believe that the Federal Reserve will decide to cut interest rates at this Federal Open Market Committee (FOMC) meeting. It has been widely believed that the rate cut will be 0.25 percentage points. However, last week, former president of the New York Federal Reserve Dudley mentioned strong arguments for implementing a 0.50 percentage point rate cut. In addition, the Wall Street Journal (WSJ) and the Financial Times (FT) reported that the option of a 0.50 percentage point rate cut remains, fueling speculation of a significant rate cut.