US August Retail Sales Released, Fed Rate Cut by 50 Basis Points Probability at 67%
U.S. Retail Sales Rise Unexpectedly in August, Suggesting Strong Economic Foundation
Data released on Tuesday showed that U.S. retail sales rose unexpectedly in August, indicating a solid economic foundation for much of the third quarter. Institutional analysts commenting on the retail sales data said it is unlikely to have a significant impact on the FOMC policy statement this week.
Markets have been debating the magnitude of the rate cut the Federal Reserve will implement. With signs of a cooling labor market and inflation falling towards the Fed's 2% target, markets have leaned towards pricing in a 50 basis point rate cut by the Fed. According to the CME's FedWatch tool, there is a 67% probability of a 50 basis point rate cut, while a smaller 25 basis point cut has a 33% probability.
