Traders are growing increasingly confident that the Federal Reserve will cut interest rates in September amid the public feud between President Donald Trump and Fed Chair Jerome Powell.
The market sees a 54% chance of the central bank lowering borrowing costs in September, according to the CME’s FedWatch tool, up from 50% earlier in the week. There’s a 97% probability that rates are held steady in July.
Trump has repeatedly called for the Fed to lower rates, while Powell has advocated a wait-and-see approach–particularly with the uncertain impact that tariffs may have on inflation.
