The chances of a September Fed rate cut have fallen sharply to 71.5%, down from nearly 99% just a week ago. The drop came after FOMC minutes revealed the Fed is prioritizing inflation risks over labor market concerns, reinforced by July’s hotter PPI data. Jobless claims climbed to 235,000, the highest since June, but did little to shift sentiment.
With several Fed officials striking a hawkish tone and hinting at only limited cuts this year, all attention now turns to Jerome Powell’s Jackson Hole speech for clues on the September 17 FOMC decision.
