Markets are betting the Federal Reserve will cut rates in September

Description

Wall Street is back to betting that the Federal Reserve will ride to the rescue, and that could be risky if the numbers don’t line up. A weak July payrolls report, paired with big downward revisions to earlier months, has markets convinced the Fed might cut rates when policymakers meet September 16–17. According to CME Group’s FedWatch tool, traders now see an almost certain second cut before year-end and about a 50-50 shot at a third. Emmanuel Cau, head of European equity strategy at Barclays, ...