What are the chances of the Fed cutting rates twice this year?

Inflation in the United States is slowing again after higher readings earlier this year, Federal Reserve Chair Jerome Powell said on 2 July 2024, while adding that more such evidence would be needed before the Fed would cut interest rates. This speech comes amidst recent data indicating a slowdown in the U.S. economy and inflation, raising speculation about potential rate cuts.

Following this, the minutes of the Fed's meeting will be released on Wednesday. Despite the Fed's initial forecast of a single rate cut in 2024, traders are increasingly betting on a 25 basis point rate cut in September.

Moreover, a Reuters poll suggests that a majority of forecasters anticipate the possibility of two rate cuts this year, with the first expected to begin in September. Stay tuned for updates as the situation unfolds.

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