TechFlow news, on July 25, according to Jinshi Data, Federal Reserve policymakers are expected to keep interest rates steady at 5.25%–5.50% next week, with rate cuts of 25 basis points anticipated to begin consecutively starting in September. Latest data shows the U.S. economy grew at a 2.8% pace last quarter, faster than expected and double the first-quarter growth rate.
Prior to the data release, traders had priced in about a 9% chance of a Fed rate cut next week, but that probability has now dropped below 7%. Ryan Sweet, an analyst at Oxford Economics, noted that the economic acceleration will help ease concerns over sustained expansion. Traders now expect the Fed to cut rates by 25 basis points each in September, November, and December, reducing bets on additional easing. Previously, traders saw around a 21% chance of more than a 25-basis-point cut before the September meeting; this has now declined to approximately 15%.
