Fed Meeting Shifts to September as Interest Rate Outlook Remains Uncertain

The Federal Reserve's decision to leave interest rates unchanged has shifted market attention to its upcoming September meeting, where another rate cut is possible this year.

Analysts predict that persistent inflation, geopolitical risks, and higher energy prices will continue to influence the policy outlook, leading to a 57% probability of a rate hike in September, according to CME FedWatch.

InnovestX Securities maintains its house view that the Fed will keep rates unchanged for the rest of the year at an average policy rate of 3.63%, expecting price pressures to ease if crude oil prices retreat after geopolitical tensions subside.