Given weak job data and increasing political pressure, traders are betting on Fed rate cuts in September, which could support market recovery.
September Rate Cut Odds
The odds of a Fed rate cut in the September meeting have recently climbed to 94% and currently stand at 88% as per the CME FedWatch Tool. Expectations for rate cuts in 2025 have surged to 50%, signaling a potential policy pivot, which could be bullish for markets.
Mary Daly's Rate Cut Strategy
San Francisco Fed President Mary Daly noted that two rate cuts this year still look appropriate but is open to more depending on continuing weak job market data. She stressed that every upcoming Fed meeting is an opportunity to act.
Markets and Crypto Rebound
Wall Street saw a rebound Monday after a sharp sell-off, driven by rising hopes of rate cuts. Crypto markets also reacted positively to weaker U.S. job data, predicting a recovery in Q4, with analysts forecasting significant price increases.
With increased bets on rate cuts and a rebound in cryptocurrencies, all eyes are now on the Fed's next move.
