Federal Reserve Rate Cut Expectations Rise

In light of shifting economic indicators, Wall Street's anticipation of imminent interest rate cuts from the Federal Reserve has intensified, especially after Chairman Jerome Powell's remarks suggesting policy adjustments are on the horizon. Analysts now speculate that the Fed may cut rates by as much as 50 basis points in September, with JPMorgan forecasting a total reduction of 100 basis points by year-end. Fed President Raphael Bostic has indicated that while inflation trends are favorable, he seeks further confirmation from upcoming economic reports before endorsing rate cuts. Meanwhile, Indian stock indices have surged, buoyed by the prospect of U.S. interest rate reductions, with sectors sensitive to rates, like metals and IT, performing particularly well. The U.S. 10-year treasury yield has also dropped significantly, reflecting market expectations of lower rates. As investors await key earnings reports, debate continues regarding the pace and scale of future cuts.