Markets Are Screaming Rate Cuts. It's Fed's Turn to Respond
- Futures trading priced in a whole extra rate cut in two days
- ‘The dam broke’ for economists reluctant to align with market
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Investors’ growing conviction that the Federal Reserve will lower interest rates in coming months is putting policy makers under scrutiny when they attend what’s billed as a listening event Tuesday.
With financial markets discounting at least two quarter-point Fed interest-rate cuts by year-end -- one more than the case just days ago -- the Fed’s conference on policy strategy, tools and communication in Chicago will be closely watched. If Fed Chairman Jerome Powell, who gives opening remarks Tuesday, wanted to counter the quickly emerging consensus about easing, he has a platform to do so.