Will the Fed Cut Rates in September?
• The U.S. added only 22,000 jobs in August, far below expectations. Unemployment rose to 4.3%, the highest in nearly 4 years.
• Futures markets now price in a high chance of a 25 bps cut, with a smaller probability of a 50 bps move.
• Fed Governor Waller supports a September cut, while NY Fed’s Williams signals gradual easing if data stays weak.
• Still, some banks, like Morgan Stanley, warn a cut is not guaranteed due to sticky inflation and resilient GDP.
👉 September’s FOMC meeting could mark the turning point for U.S. monetary policy.
