English
Slowing inflation and jobs are pushing the Fed to almost certainly cut interest rates in September 2025.
Expectations have increased that the US Federal Reserve will cut interest rates at its meeting scheduled for September 16 and 17, 2025, after July CPI data showed a moderate rise in inflation.
According to the CME Group's FedWatch tool, the probability of a quarter-basis-point rate cut has reached 99.9%, while some analysts see the possibility of a larger cut.
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Bissett Poses Half a Basis Point Cut
US Treasury Secretary Scott Bessent said in an interview with Bloomberg that recent weak employment data could prompt the Federal Reserve to cut interest rates by 50 basis points.
He explained that revisions from the Bureau of Labor Statistics showed job growth slowing to near-standstill in May, June, and July, which would have justified a cut in June or July had the data been available in time, according to Reuters.
Trump's Criticism
US President Donald Trump sharply criticized the large rate cut passed last year before the presidential election, describing it as politically motivated, suggesting that it was timed shortly before November.
Market Context and Prospects
Historically, the Federal Reserve has resorted to further rate cuts when faced with clear signs of weakness in the labor market, especially if they coincide with relatively low inflation.
Observers believe the September meeting could see a preemptive cut in support for the economy amid concerns about slowing growth, with markets monitoring any new indicators from August data before a final decision.
