Amid all the chaos and focus on the US election, let's not forget that we have a Fed meeting as well on 7 November. As things stand, traders are still pricing in ~99% odds of a 25 bps rate cut for tomorrow. But looking out to October next year, the total rate cuts priced in is now at ~104 bps and that is down from ~118 bps before the election.
For policymakers, this is arguably the worst case scenario as they will be looking to cut rates into much uncertainty surrounding trade policies and inflation. But fun times for markets I guess. 😜
