Markets and Experts Anticipate Significant Fed Rate Cuts Following Inflation Data

Investors widely expect the Federal Reserve to cut interest rates in September, driven by a cooler inflation report, though some analysts and officials remain cautious due to mixed economic signals like rising core inflation and labor market data. The market is pricing in a high probability of a rate cut, possibly even a double reduction, but experts warn that upcoming economic data, especially jobs figures, will heavily influence the Fed's decision. The tone among policymakers may become more dovish, especially with new appointments and the absence of a September meeting, leaving the door open for further rate cuts later in the year.