Less than ten days away from the Fed's September interest rate meeting, traders are starting to bet on an October rate cut

September 8th. With fewer than ten days remaining until the Fed's September interest rate meeting, current market traders are placing high bets on a rate cut in September and simultaneously elevating the probability of a rate cut in October. According to CME's "FedWatch" data, the likelihood of the Fed not implementing a rate cut in September currently stands at 0, with a 90% chance of a 25-basis-point rate cut. This probability is reported to be 87% on Polymarket. Moreover, traders are beginning to make wagers on a rate cut in October. CME data indicates that if the Fed cuts rates in September, the probability of another 25-basis-point rate cut in October is 71.6%, which represents a substantial increase from last week's 48%.