Chances of a September Fed rate cut increase to 80%

[tacobell fan]

• The fed funds futures market now points to an 80% of at least a quarter point rate cut at the Fed’s September meeting, according to CME FedWatch tool.
• Traders are also pricing in two more cuts on the benchmark lending rate to the range of 150 to 175 basis points by the end of 2019.
• The Fed on Wednesday dropped the target range for its overnight lending rate to 2% to 2.25%, or 25 basis points from the previous level.
• The Fed also left the door open to future cuts, saying it will “act as appropriate to sustain the expansion” as it continues to evaluate the incoming data.