Fed may cut rates again in November

The Federal Reserve plans to continue to cut interest rates gradually after a sharp 50 basis point cut in September, but Wall Street believes the pace should be faster. Deutsche Bank's chief U.S. economist Lu Zetti said that if the U.S. unemployment rate and non-farm payrolls data deteriorate, another 50 basis point rate cut in November will become a possible issue. Although Fed policymakers have emphasised steady rate cuts to avoid overheating the economy, markets are betting that worsening economic data will prompt accelerated action. Currently, the federal funds futures show the possibility of a 50 basis point rate cut in November is about 60 per cent.