Yesterday, when discussing what would happen if the Fed cuts 50bps vs "only" 25bps on Wednesday at 2pm, we showed a Deutsche Bank chart according to which uncertainly ahead of a Fed decision had never been greater.
First, recall that with less than 24 hours to go until the Fed announcement, the rates market has currently priced in approximately 70% odds of a 50bps rate cut, a number that soared from just 15% after last Thursday's hot CPI print, as a result of a barrage of media reports and news articles (including two from Nikileaks) that strongly hinted, if not urged, for a 50bps rate cut.
