From Investing.com: 2024-08-16 08:19:23

The Federal Reserve is expected to cut interest rates at the September 2024 meeting, with speculation on whether it will be a 25 bps cut or a larger 50 bps cut. Odds of a 50 bps cut are now at 32%, down from 53% last week, while the probability of a 25 bps cut has risen to 68%.

Recent economic data shows positive inflation readings with stronger-than-expected retail sales, indicating a soft landing. Stocks have rebounded after a sell-off, with the belief in a smaller rate cut gaining traction. The Fed adjusts rates to control inflation and stabilize the economy, using cuts to spur growth and hikes to prevent overheating.



Read more at Investing.com: Traders now betting on smaller Fed rate cut in September By Investing.com