Fed Rate Cut Expectations Rise: 70% Probability of 25 Basis Point Reduction in September

As of August 31, market data from CME's "Fed Watch" indicates a 70% probability that the Federal Reserve will cut interest rates by 25 basis points in September. The possibility of a more substantial cut, by 50 basis points, is currently at 30%. These expectations reflect growing anticipation of monetary policy easing as the Fed responds to ongoing economic conditions. Market participants are closely watching these developments, with potential rate cuts as a pivotal factor influencing financial markets in the coming weeks.