### Fed Rate Cut: What to Expect in September?

As the Federal Reserve gears up for its September meeting, economists largely expect only a modest quarter-point reduction in interest rates, bringing them down to a range of 5% to 5.25%. While some Wall Street giants and futures investors are anticipating a bolder 50-basis-point cut, economists believe the Fed will tread cautiously, preferring incremental adjustments through the end of the year.

The July jobs report, which showed slower hiring and a rising unemployment rate, has tempered expectations for aggressive rate cuts. Despite this, inflation remains under control, with the consumer price index (CPI) likely nudging up only slightly in July.

Fed policymakers, led by Jerome Powell, are balancing their dual mandate of maintaining high employment and steering inflation towards the 2% target. Although a slight uptick in inflation is expected, it shouldn't alarm markets too much. The Fed is watching core services prices closely, and potential increases in goods prices due to shipping costs are also on their radar.

Amid market uncertainties, most economists believe the U.S. can achieve a “soft landing,” avoiding a full-blown recession. While some predict a recession is on the horizon, the majority see a gradual slowdown rather than a severe downturn.

Stay tuned for the Fed’s decision and its impact on the markets!#TONonBinance #MarketDownturn #BitcoinTherapist #TRADERTIPS #TraderAlert