Investors Bet on Rate Cuts as Fed Meeting Looms

Group 1 - Investors are anticipating a reduction in interest rates by the Federal Reserve in the upcoming policy decision, with a focus on the magnitude of the cut [1][2] - The CME FedWatch tool indicates a 94% probability of a quarter-point reduction and a 6% chance of a half-point cut, suggesting market expectations for continued rate cuts in October and December [2] - Recent labor-market data, which was softer than expected, has bolstered the argument for a more accommodative monetary policy despite inflation remaining above the Fed's 2% target [2]