As indicated by the CME's "FedWatch" tool, the likelihood of the Federal Reserve keeping interest rates steady in September stands at 12.6%. Conversely, the probability of a 25 basis point rate reduction in the same month has soared to an impressive 87.4%. Looking ahead to October, the Fed's chances of maintaining the status quo on interest rates dwindle to 5.6%. The probability of a cumulative 25 basis point cut by then rises to 45.8%, while the odds of a more significant 50 basis point reduction reach 48.6%.
