“The FFF’s [Fed funds futures] “We are currently forecasting a 50% chance of a 50 bps hike in September; however, we expect these chances to decline as we approach the FOMC meeting due to generally acceptable economic data. However, should the Fed cut by 50 bps, we believe the market reaction will be positive initially, but a sell-off could follow as concerns about the economy and yen strength rekindle the unwinding of the carry trade,” Arnim Holzer, global macro strategist at Easterly EAB Risk Solutions, said in an email.
