Bessent says market expects Fed to cut rates this year: 'substantial probability'
1. Markets expect Fed rate cuts amid tariff-induced inflation concerns. 2. 89.4% probability of a rate cut in September according to CME FedWatch. 3. Tariff price increases viewed as one-time adjustments, limited inflation impact. 4. Weak jobs report rekindled hopes for September rate cuts. 5. Inflation trends show a rise but remain below target levels.