Traders have reduced their expectations for another rate cut by the Federal Reserve before June next year to zero

ChainCatcher message, according to CME Fedwatch data, after the Federal Reserve's 50 basis point rate cut in September, the federal funds futures market now sees the probability of further rate cuts of 175 basis points or more by June next year soaring to 77%. Traders now believe that the likelihood of the Federal Reserve making another significant rate cut during this period has returned to zero.

The Federal Reserve's past predictions have been poor. Skeptics, including Wall Street Journal columnist James Mackintosh, point out that there is a wide divergence among Federal Reserve policymakers on where interest rates will ultimately settle.