Wall Street expects the Federal Reserve to cut interest rates faster than predicted, boosting the economy and markets. Investors now bet that the benchmark short-term rate will fall below 3% by next year’s end, a significant shift from May predictions of a 2026 target of around 3.5%. This reduction in borrowing costs makes it cheaper for Americans to take on debt.
Source: https://www.wsj.com/finance/investing/interest-rates-bets-investors-f47c12be