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Fed interest rate cut expectations rise, with the probability of a cut in September soaring to 86%.
[Coin World] Rainer Guntermann from the research department of Deutsche Bank stated in a report that the sentiment for interest rate cuts in the U.S. may continue to rise. The interest rate strategist noted that after last Friday's disappointing labor market report, this week's data schedule in the U.S. is relatively light and insufficient to change this trend. He stated: "Furthermore, the Fed seems to be increasingly focused on the downside risks to economic growth, although its recent comments still sound cautiously balanced, and the price risks due to tariffs remain." After the weak non-farm payroll data was released, the market increased its expectations for a rate cut by the Fed in September. According to data platforms, market pricing currently reflects an 86% probability of a 25 basis point rate cut in September.