📰 Why do markets expect the Fed to cut interest rates again at the October meeting?
Expectations in global markets have increased that the U.S. Federal Reserve may be moving toward another interest rate cut, as economic indicators slow down and inflation moderates.
🔹 Labor market weakens: A slowdown in hiring and a slight increase in unemployment indicate that the economy is beginning to feel the effects of the current interest rate hike.
🔹 Inflation gradually decreases: Although it is still above the 2% target, its low pace gives the Fed greater flexibility to act.
🔹 Markets anticipate the decision: Investors have started to price in a potential cut of 25 basis points to support growth and prevent a deeper recession.
💬 In the end, the Fed faces a delicate equation: between curbing inflation and reviving the economy. All eyes are on the October meeting.
