Wall Street bets on September rate cut after Powell’s Dovish remarks
Wall Street brokerages are increasingly forecasting a Federal Reserve rate cut in September following dovish remarks from Chair Jerome Powell.
At the Jackson Hole economic symposium on Friday, Powell highlighted rising risks to the labor market and emphasized the need for monetary policy to consider both jobs and inflation. In response, Deutsche Bank, BNP Paribas, and Barclays moved forward their expectations for a rate cut to September, News.Az reports, citing Reuters.
Last month, the Fed held interest rates steady while maintaining projections for two cuts in 2025, and signaling a smaller pace of reductions in 2026 and 2027. Traders now price in 52.3 basis points of rate cuts by year-end, with an 83.3% probability of a 25-bps cut in September, according to CME Group’s FedWatch tool.
The Federal Open Market Committee is scheduled to meet on September 16–17 to set policy.
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