Stock market bulls eagerly await the Fed’s promise of September rate cut

WHEN the Federal Reserve meets this week, expect the US central bank to build a case for an interest rate cut to take place in September.

Fed chairman Jerome Powell has mastered the modern art of the pivot, going from a sternly hawkish tone for almost two years to a resolutely dovish tone in recent months.

On Wednesday (Jul 31), at the end of the Fed’s two-day meeting, he is likely to pivot yet again. Instead of screeching like a hawk or cooing like a dove, he may well cluck like a proud hen watching her chick make a soft landing.