Why the Fed will lower interest rates next week. Coinbase says ‘cuts baked in,’ Morgan Stanley forecasts more ahead

Markets have moved past debating if interest rate cuts are coming. The focus now is on how deep the Federal Reserve will go. The US central bank is widely expected to lower its benchmark rate at next week’s meeting, with futures markets like CME FedWatch assigning a near 95% probability of a quarter-point reduction. “Cuts are baked in,” Coinbase analysts wrote in its weekly market brief. “The weakening labor market and housing slump make a gradual policy shift unavoidable.” Morgan Stanley analysts echoe ...