Odds of quarter-point cut to fed funds ease but remain high
12:27p ET April 25, 2008 (MarketWatch)
SAN FRANCISCO (MarketWatch) -- Odds of a quarter-point cut to the Federal
Reserve's fed funds target rate eased slightly Friday as traders digested a drop
in consumer sentiment, a jump in inflation expectations and a rally in crude
prices. The May fed funds futures contract fell 1 basis point to 97.94 in
mid-morning trading, with the contract implying a 76% chance of a quarter-point
cut to the Fed's current target interest rate of 2.25%. On Thursday, traders bet
there was an 80% chance of a quarter-point cut. Expectations for a steeper rate
cut have been slipping over the last two weeks. A week ago, the futures market
had fully priced in the chance of a quarter-point cut. Two weeks ago, futures
had also priced in a 44% chance of a half-point cut.

im no fed justwin..what can i say?