✅ Fed Rate Cut Expected in September :

📉 *Probability of Cut*

- 96% chance of a 25 basis point rate cut in September after soft inflation data.

📊 *Inflation Report*

- July CPI: +0.2% MoM | +2.7% YoY — both slightly below forecasts.

📉 *Why the Fed Might Cut*

- ⚠️ *Cooling Economy*: Slower job growth and consumer activity.

- 🧊 *Moderating Inflation*: Moving closer to the Fed’s 2% target.

- 📉 *Labor Weakness*: Unemployment at 4.2%, job creation below expectations.

📈 *Impact on Markets*

- 🏠 *Boost for Housing & Tech*: Lower rates = cheaper loans, better valuations.

- 💼 *Cheaper Credit*: Easier borrowing for consumers and businesses.

- 🏦 *Pressure on Banks*: Lower margins for traditional banking sectors.

🧐 *What to Watch Next*

- 📅 *Future Data*: Inflation, jobs, and GDP growth will influence Fed's pace.

- 📣 *Fed Guidance*: Dot plots and speeches will set future rate expectations.

💬 *Bottom Line*: Rate cut almost certain — potentially bullish for crypto, stocks, and growth assets if inflation stays tame.