68% of US primary bonds traders expect 0.25% rate cut

After Fed announcement of a 0.25% rate cut, the Reuters surveyed 25 primary bonds traders in the US, among which, 17 predicted that Fed would reduce the rate by at most 0.25% at the MOFC meeting in August, and 2 believed that another rate cut is unlikely.

It is the sixth time that Fed reduced the rate and Fed said in a statement that it will not rule out the possibility of another rate cut. Morgan Stanley Chief Economist Richard Berner thought that the rate-cut circle has come to a conclusion.

The 25 bonds traders forecast that the US economy has 35% chances of recession, lower than the prediction of 39% in May.

Next MOFC meeting is scheduled on August 21.

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