Financial markets remain uncertain about whether the Federal Reserve will lower interest rates in September, with traders closely watching the next round of economic indicators for direction. Key data points such as inflation reports and employment figures are expected to play a decisive role in shaping the central bank’s policy decision. While recent market sentiment has favored a potential rate reduction, analysts caution that the Fed will likely require stronger evidence of cooling economic activity before committing to a cut. Investor positioning reflects this uncertainty, with futures markets showing only a moderate probability of a move later this year. Market participants are particularly focused on the upcoming CPI and labor market statistics, which could either reinforce or weaken the case for monetary easing. Until then, expectations will remain fluid and highly sensitive to new information.
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Wall Street’s September Fed rate cut bets still hinge on next data
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