'Worst kind of setup for the Fed': What Wall Street is saying about the central bank's next rate decision

Group 1 - The Federal Reserve is expected to cut interest rates due to weak labor market data despite persistent inflation, with a 25 basis points cut anticipated during the upcoming policy meeting [1][3][4] - Consumer prices increased by 0.4% in August, up from a 0.2% rise in July, indicating ongoing inflationary pressures [1] - Weekly jobless claims rose to 263,000, the highest level in nearly four years, reflecting a slowdown in the labor market [1][5] Group 2 - Wall Street strategists highlight the complexity of the Fed's decision-making process, balancing the dual mandate of full employment and price stability amid a slowing job market and sticky inflation [2][3] - There is a 76% probability priced in by investors for three rate cuts by the end of the year, although caution is advised due to the underlying economic data [4] - A recent jobs revision indicated that the US employed 911,000 fewer people than previously reported, underscoring the labor market's slowdown [5]