Traders Revive Chance of Half-Point Fed Cut With Just Days to Go.

Traders are reconsidering the possibility of a large interest-rate cut by the Federal Reserve, causing a rally in US government bonds and introducing uncertainty ahead of next week's decision. The chance of a 50-basis-point cut has risen to around 30% after being discounted in recent days. The debate over the size of the rate cut has captured market attention, with some speculating on more aggressive action. However, others believe a half-point cut would be an overreaction and that the economy does not urgently require looser monetary policy. [Extracted from the article]