Fed faces crunch call, market now prices in cut

Financial markets have dramatically adjusted expectations of the outcome interest-rate decision to be announced by the Federal Open Market Committee (FOMC) late on Tuesday.

Less than a week ago, Federal Fund futures markets priced in with near certainty that the FOMC will keep rates at 2% this week. The fresh about of financial turmoil, however, has lead to a sharp adjustment in these expectations.

On Tuesday, the futures markets priced in 25-basis-point cut with almost 90% probability. Indeed

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