Ask Fear & Greed: How do markets 'price in' rate cuts?
FEAR & GREED | Business News · Fear and Greed
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Show Notes
Listener Hayley asks: Can you please explain what it means when you say "Markets have now priced in a 60% or 75% chance of the Fed cutting rates". Particularly, I want to understand how we know that markets have priced in something and where does the % rate come from? Is it economists that provide that data or is it reflected in the futures market? I hear markets talk about it all the time "this news has already been priced in etc" so just curious as to how how do we know and how do we know the extent it has been priced in?
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