Markets Expect 25bps Fed Rate Cut: What It Means For Investors

The Federal Reserve’s next policy decision is looming, and markets are almost certain of a rate cut. According to the CME FedWatch Tool, there’s an overwhelming 98.3% probability that the Fed will lower interest rates by 25 basis points (bps). This expectation stems from signals of a slowing economy, easing inflation, and global macroeconomic uncertainty. Experts believe this move is driven by a shift in monetary policy after previously tightening to combat inflation.