Mester and Bullard share their views on the Fed's decision 💡

Former Federal Reserve bankers, in media commentaries for the largest American radio stations, are in favor of a 25 basis point cut in interest rates during today's Fed decision, which inaugurates the cycle of rate cuts. Loretta Mester, former head of the Fed branch in Cleveland, and James Bullard from St. Louis announced today that in their opinion, the estimates of a 50 basis point cut today are exaggerated and they themselves were in favor of a 25 basis point cut. Fed bankers currently holding positions due to legal reasons cannot comment on any aspects of today's decision today.

The market itself, however, is divided. The money market favors a 50 basis point cut and currently estimates such a probability at 61%. Most Wall Street bank analysts are predicting a decision to cut by 25 bp, while even within the banking structures themselves these views differ dramatically, which creates a basis for a very volatile end of the day.

Source: CME