Markets are going into full risk-on mode after fresh data shows a 95% probability that the U.S. Federal Reserve will cut interest rates at its September meeting.
This shift comes as economic indicators point to cooling inflation, slowing growth, and growing pressure on the Fed to ease its monetary stance. Analysts say this could mark the start of a major policy pivot that Wall Street and global investors have been waiting for.
š” Why This Matters:
Lower interest rates mean cheaper borrowing costs for businesses and consumers.
Stocks, real estate, and especially crypto markets could see significant inflows.
A September cut could be followed by additional cuts in Q4, fueling a liquidity wave.
š® Market Reaction:
U.S. equities futures are already showing bullish momentum.
The dollar index (DXY) is slipping as investors price in a dovish Fed.
Bitcoin and Ethereum traders are calling this the āgreen lightā for a parabolic move into year-end.
š Analyst Take:
ā95% odds essentially lock in a September rate cut. The Fed is signaling that itās ready to support markets amid weakening growth. Risk assets are set to explode higher,ā one strategist told Bloomberg.
š„ With just weeks to go until the decision, all eyes are now on Jerome Powell and the FOMC ā but for many traders, the rate cut rally has already begun.