Federal Reserve Rate Decisions Expected: Will September Bring Cuts?

Market analysts are anticipating the Federal Reserve’s September interest rate decision will likely result in a cut, according to CME Group’s ‘FedWatch’ tool. The probability of maintaining current rates stands at 9.3%, while there is an overwhelming 90.7% likelihood of a 25 basis point decrease. This trend continues into October, with a 4.5% chance of keeping rates unchanged. The cumulative predictions for a rate cut remain high, with 48.9% likelihood of a 25 basis point reduction and 46.5% probability of a 50 basis point adjustment.