Wells Fargo: Expect the Fed to open the door to rate cuts this month

Despite the growing political turmoil in the United States, investors are holding on to their bet that U.S. interest rates will fall this year. Data from CME Group shows that the probability of the Federal Reserve staying on hold next week and cutting interest rates on September 18 are both above 90%, and the probability of a total of three rate cuts this year is close to 50%. This is little changed from before Biden withdrew from the campaign. Wells Fargo economists said in a report that they expect the Federal Reserve to keep policy unchanged this month, opening the door to rate cuts. They added that the Fed's past record shows that it will not shy away from cutting interest rates at its last meeting before the election. (Jinshi)