Will the Federal Reserve cut interest rates? Market thinks so

Like a petulant child screaming for candy at the supermarket, the White House may finally get what it wants: Lower interest rates.

Equities are rallying for the second straight day on Wednesday as the market is forecasting a rate cut, not a rate hike, by the Federal Reserve.

According to the CMEGroup Fed Watch tool, investors are not penciling a rate cut at this month’s Federal Open Market Committee (FOMC) policy meeting. But the market is anticipating a reduction in the target rate by as much as 75 basis points.

Here is the July chart:

By December, interest rates might fall to the 1.00 to 1.25 percent target range.

Yikes!

So, when will the headline read: “Peter Schiff was right AGAIN.”