Odd Lots

What to Watch For Next When the Fed Starts Cutting Rates

What comes after September?

The Marriner S. Eccles Federal Reserve building in Washington, DC, US, on Tuesday, June 25, 2024. Traders in the US rates options market are embracing a nascent wager on the Federal Reserve's interest-rate path: a whopping 3 percentage points worth of cuts in the next nine months.Photographer: Ting Shen/Bloomberg

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By Joe Weisenthal and Tracy Alloway

August 27, 2024 at 5:54 PM UTC

This article is for subscribers only.

At Jackson Hole, Fed Chairman Jerome Powell gave a clear signal that the rate cut cycle is likely to start in September. But of course that just opens more questions. Will it be a 25bps cut? Will it be 50? Could it be two 50s in a row? When does it stop? On today's episode, we speak with Peter Williams, a macro strategist at 22V Research. He walks us through his interpretation of Powell's speech and what to look for as the rate cut cycle begins. The transcript has been lightly edited for clarity.