The Federal Reserve is overwhelmingly expected to pull the trigger on an interest rate cut when it concludes its Sept. 16-17 Federal Open Market Committee (FOMC) policy meeting.
New CME FedWatch Tool data show that investors have penciled in a 96 percent chance of a quarter-point reduction to the benchmark federal funds rate—a key policy rate that influences borrowing costs for businesses, consumers, and governments—from the current target range of 4.25 percent to 4.5 percent.
While there has been a debate about whether the Fed should follow through on a jumbo half-point cut comparable to last year’s start of the easing cycle, the futures market has trimmed its expectations to a more modest 25-basis-point move….
Fed Expected to Deliver First Rate Cut Since Last December
