The probability of the Fed lowering interest rates by 25 basis points in October is 99%, and the expectation for a rate cut in December is strong.

[Fed's] October rate cut probability of 25 basis points is 99%, strong expectations for December rate cut. CME “FedWatch” indicates that the probability of a 25 basis point rate cut in October is 99%, while the probability of a 50 basis point cut is 1%. Additionally, the probability of a cumulative 50 basis point cut in December is 94%, and the probability of a cumulative 75 basis point cut is 6%. (Jin10)

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