Markets are largely pricing in a federal reserve rate cut at the upcoming September meeting. According to CME, markets are pricing in an 87% probability of a quarter point cut, though the future beyond that is murky. Labor markets have largely driven Fed decisions and negotiations, and recent data released in August seems to support a rate cut decision.
For more:
https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html
