Fed-funds futures traders were shifting toward a greater likelihood of a 50-basis-point rate cut from the Federal Reserve by October, following Treasury Secretary Scott Bessent's calls for easing. The chance of such a reduction rose to 70.

Scott Helfstein, head of investment strategy at Global X, added that there’s “little evidence” tariffs are causing a meaningful rise in inflation at this point, noting that shelter and energy services like electricity and piped gas remain primary drivers.

The Federal Reserve has announced new interest rate cuts set to take effect in 2025, a decision that has sparked widespread discussion among economists, policymakers, and market participants. This move is seen as a response to evolving economic conditions,