Powell’s Dovish Tone Resonates, Probability of a 25 Basis Point Fed Rate Cut in September Rises to 85.2%
BlockBeats News, August 23 — Federal Reserve Chair Jerome Powell stated that the continually "changing" economic risks have given the Fed more justification for a rate cut. This remark indicates that Powell has aligned himself with the "dovish" camp within the Federal Open Market Committee, which is responsible for setting interest rates, and also signals that he may support a 25 basis point rate cut at the Fed’s next meeting in September.
According to CME FedWatch, the probability of a 25 basis point rate cut by the Fed in September has risen to 85.2% (compared to about 75% before Powell’s speech), while the probability of keeping rates unchanged is 14.8%.
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