HSBC: Fed Data-Driven Path as Markets Price September Cut

The Federal Reserve left its policy rate unchanged at the July meeting, a move widely anticipated by investors. HSBC strategists highlight that the central bank’s path forward remains firmly data driven.

Market pricing now reflects a roughly two-thirds probability that the Fed will deliver a rate cut at its September gathering. The shift in expectations underscores how incoming economic releases could sway the decision.

With the Fed emphasizing its meeting-by-meeting approach, traders will closely monitor labor market and inflation data in the weeks ahead.