On Sept. 18, in its FOMC meeting, the Fed reduced the benchmark lending rate by 50 basis points, marking the first cut of the Fed Fund rate since March 2020. Although the first rate cut was certain in September, market participants are surprised about its magnitude. Just before the Fed’s decision, the CME FedWatch tool showed a 100% probability of a 25 basis-point cut and a 65% chance of a 50 basis-point reduction. Fed’s aggressive beginning of the low-interest rate regime has compelled a section of market ...