After somewhat positive inflation data in July, the chances of the Federal Reserve cutting interest rates in September are at roughly 83%, according to CME Group 's FedWatch tool calculations on Aug. 18. One month earlier, roughly 59% of traders betting on changes in the federal funds rate thought an interest rate cut would occur in September.

Almost all” officials backed July’s interest-rate decision, even though two governors backed a rate cut, according to a meeting summary.

Futures markets are also expecting a rate cut. Investors peg the chances of a quarter-point interest rate cut at nearly 96%, according to the CME FedWatch Tool, a measure of market sentiment.

The Fed made a "huge mistake" not raising rates during the pandemic. Now it risks another blunder, top economist Mohamed El-Erian says.

WASHINGTON:  Federal Reserve Governor Lisa Cook said on Wednesday (Aug 20) she had "no intention of being bullied to step down" from her role at the central bank, amid calls from US President Donald Trump to do so,

Fed cuts would immediately make borrowing cheaper on credit cards and auto loans, since those products are based on the short-term interest rates the central bank heavily influences. Mortgages are a different story,

"HELOC interest rates are generally structured as prime plus a margin," Debbie Calixto, sales manager at mortgage lender loanDepot, says. The federal funds rate influences the prime rate, while the margin reflects an additional percentage based on your credit score and loan details.

President Donald Trump resumed attacks on Federal Reserve Chair Jerome Powell, this time claiming he is hurting the housing industry with high rates.