Markets are predicting that the Federal Reserve will cut rates at the next policy meeting on Sep. 17. The current yield, at 3.72%, suggests market sentiment is pricing in policy easing. The Fed funds futures market indicates an 87% probability of a rate cut. The wild card is tariff-related inflation and whether it will show up in the next CPI updates. Economists believe tariffs will lift inflation, impacting consumer spending. Federal Reserve officials are monitoring the situation closely, with the possibility of more than two rate cuts if inflation rises and the labor market weakens.

Source: https://www.capitalspectator.com/will-incoming-inflation-data-derail-outlook-for-interest-rate-cut/

Read more at 1. Tesla stock reaches all-time high after strong Q3 earnings report. – CNBC

2. Apple announces record-breaking iPhone sales for the holiday quarter. – Wall Street Journal

3. Federal Reserve keeps interest rates unchanged in latest meeting. – Reuters

4. Amazon reports a 30% increase in revenue for the fourth quarter. – CBS MarketWatch

5. Facebook faces backlash over privacy concerns regarding user data. – Barchart: Will Incoming Inflation Data Derail Outlook for Interest Rate Cut?