Market Predictions: Fed Expected to Cut Interest Rates in September

Analysts anticipate the Federal Reserve will likely adjust its interest rates downward in September, according to the CME FedWatch Tool. The tool indicates a high probability of a 25 basis point rate cut (96.6%). Meanwhile, the likelihood of maintaining current rates sits at just 3.4%. Looking ahead to October, the chances of a pause on interest rate changes dip to 1.6% while the probabilities for rate cuts increase with a 46.8% chance of a 25 basis point reduction and 51.6% for a 50 basis point cut.