Amid Record Uncertainty, Traders Face Unprecedented Losses If Fed Doesn't Cut 50

Yesterday, when discussing what would happen if the Fed cuts 50bps vs "only" 25bps on Wednesday at 2pm, we showed a Deutsche Bank chart according to which uncertainly ahead of a Fed decision had never been greater.

First, recall that with less than 24 hours to go until the Fed announcement, the rates market has currently priced in approximately 70% odds of a 50bps rate cut, a number that soared from just 15% after last Thursday's hot CPI print, as a result of a barrage of media reports and news articles (including two from Nikileaks) that strongly hinted, if not urged, for a 50bps rate cut.