77% of Polymarket Traders Expect 25 Basis Point Cut in Federal Reserve’s FOMC Meeting

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

The majority of traders on Polymarket are betting on a reduction in the federal funds rate as the Federal Open Market Committee (FOMC) meeting, scheduled for September 17-18, approaches.

Data from the decentralized betting platform shows that 77% of traders expect a 25 basis point cut, reflecting a strong consensus on this outcome.

The bet, which has seen a trading volume of $10.9 million, also indicates a 21% chance of a more substantial 50 basis point cut, while only 3% of traders believe the rate will remain unchanged.

The anticipation of a rate cut is driven by several key economic indicators.

A decline in inflation and a weakening job market are fueling expectations that the Federal Reserve may take action to provide more economic support.

These factors are in line with the Fed’s dual mandate to control inflation while promoting economic growth.

Odds of a 50+ bps rate cut just tripled. pic.twitter.com/m29EkytvRl

While most analysts agree on the likelihood of a 25 basis point cut, they also note that a more significant reduction could be considered if economic conditions deteriorate further.

Recently, at the Jackson Hole symposium, Fed Chair Jerome Powell said that the “time has come for” the US Federal Reserve to cut interest rates.

According to Investec economist Lottie Gosling, very weak data could make a 50 basis-point rate cut more likely, and on the other hand, strong data could rule out a bigger cut.

“Even though Powell refused to comment on whether the door could be open to a 50 basis-point [rate] cut in September, we