U.S. August retail sales released, the probability of the Fed cutting interest rates by 50 basis points is 67%

Data released on Tuesday showed that U.S. retail sales unexpectedly rose in August, suggesting that the U.S. economy remained on solid footing for most of the third quarter. Institutional analysts commented that the U.S. retail sales data is unlikely to have much impact on this week's FOMC policy report. The market has been arguing about how big a rate cut the Fed will implement. With signs of a slowing labor market and inflation falling to the Fed's 2% target, the market has tended to price in a 50 basis point rate cut by the Fed. According to CME's FedWatch tool, there is a 67% chance that the Fed will cut interest rates by 50 basis points, while there is a 33% chance that the Fed will choose a smaller 25 basis point cut. (Jinshi)