PANews September 18th: QCP Capital Predicts Volatility Following Fed Meeting

QCP Capital stated in its latest report that the Federal Reserve's meeting today will determine the direction of financial markets in the medium to long term. According to Fed Funds futures pricing, market participants see a 33% probability of a 25 basis point rate cut and a 66% probability of a 50 basis point rate cut. However, economists surveyed by Bloomberg believe a 25 basis point cut is more likely, with 104 out of 114 predicting this outcome. Only 9 of the 114 economists expect a 50 basis point rate cut.

QCP Capital believes that volatility will significantly increase in the days following the meeting as traders readjust their positions over the coming weeks.