The Federal Reserve's upcoming interest rate decision is not as clear-cut as the market pricing suggests

ChainCatcher news, according to Jinshi reports, LBBW analyst Elmar Voelker stated in a report that the interest rate decision at the Federal Reserve's meeting next week is not as clear-cut as the forward rates suggest.

"In our view, the recently released U.S. macroeconomic data does not provide a clear template for the upcoming interest rate decision," said the seasoned fixed-income analyst. Voelker noted that from the perspective of bond market participants, "a rate cut in December and a pause in January" is not much different from "a pause in December and a rate cut in January."

LSEG data shows that the money market believes there is a 94% chance of a 25 basis point rate cut by the Federal Reserve next week, while the probability of maintaining the current rate is 6%.