The argument for investing in small-cap stocks is only getting stronger after the Fed's preferred inflation measure, the PCE index, recently confirmed a trend of cooling prices. While there's no policy change expected at the conclusion of today's two-day meeting of the Federal Open Market Committee (FOMC), investors will be poring over comments from Chair Jerome Powell and his fellow policymakers for any concrete clues about a September rate cut.
Notably, the CME FedWatch tool, widely used to gauge rate cut expectations, now shows a 100% chance of an interest rate cut in September, with 87.7% odds of a quarter-point easing.
