Federal Reserve Poised for Rate Cut Amid Cooling Inflation and Rising Jobless Claims

Investors anticipate a 25 basis point cut next week as the Fed responds to economic data and market expectations.

Federal Reserve expected to cut interest rates at its meeting next week, with a 25 basis point reduction seen as most likely.
Recent inflation data shows cooling pressures, with the Producer Price Index rising 0.2% in August, aligning with expectations.
Initial jobless claims increased to 230,000 last week, adding to the case for a rate cut to support the labor market.
Stock markets have reacted positively, with the S&P 500 and Nasdaq posting gains amid anticipation of the Fed's decision.
Lower mortgage rates have made home buying slightly more affordable, though high prices and limited supply continue to challenge the housing market.