A Rate Cut Is Firmly on the Table

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I've been adamant all last year and throughout this year about no rate cuts, but now I have to jump ship and say we will see a rate cut in September — and possibly one more before year-end. 

However, this is all data-driven, and as we all know, data can change quickly. The Fed is widely expected to keep rates steady at its meeting later this month. However, as of Friday, traders were pricing in a 94% chance that the central bank will cut interest rates in September, according to CME Group data — up from 78% a week ago. I can't ignore that!

I'm uncertain about how the attempted Trump assassination will affect the markets, but one thing is certain: if Trump gets re-elected, one of his first actions will likely be to start lowering rates.