(Reuters) – U.S. stock index futures were flat on Friday as caution prevailed about the size of the Federal Reserve’s interest rate cut that is expected next week, while Boeing shares fell after the planemaker’s factory workers went on strike.
Traders’ bets now indicate market pricing of a bumper rate cut have shot up, with chances of a 50-basis point cut standing at 41% compared with 14% seen on Thursday, according to CME’s FedWatch Tool.
Former New York Fed President Bill Dudley said there was a strong case for a 50-bps interest rate cut.
“If pricing stays where it is currently, it would be the first meeting in years where there’s serious uncertainty about the rates decision,” Deutsche Bank analysts said.
“A couple of articles were published in the Wall Street Journal and the Financial Times suggesting that a 50 bps move was still in play, which has led markets to once again…
