According to the CME Fed Watch tool, the odds that the Federal Reserve will cut interest rates in July are only about 20%. However, those odds move to around 68% in September. And by October, many analysts factor in a 50% chance that rates will be 50 basis points (0.5%) lower than they are today.
Investors are seeing that price action in the market today. Many investors want to position themselves ahead of the rate cuts so they can capture the gains. That’s a key reason why they’re climbing the wall of worry and buying stocks.
