The July meeting minutes of the Federal Open Market Committee (FOMC) indicated that the Federal Reserve is likely to cut interest rates by 25 basis points in September. This has led investors to believe that the Fed may be able to slow down inflation to meet its 2% target.

Additionally, many analysts agree that a delayed interest rate cut could further weaken the economy, with nearly a 100% chance that the Federal Reserve will reduce interest rates in September.

Source: Fxstreet