**US July PPI Data Fuels 92.5% Odds of Fed Rate Cut in September**

Following the latest release of US July PPI data on August 14, market expectations for Federal Reserve monetary policy have crystallized. The probability of a 25 basis points interest rate reduction in September has settled at 92.5%, while the likelihood of the central bank maintaining current rates stands at just 7.5%.

This near-certain pricing reflects how the PPI data has influenced market sentiment regarding the Fed's next policy move. With inflation readings through July now in the books, traders are heavily weighted toward anticipating the rate cut scenario within the coming month.

The stark contrast between the two probabilities—92.5% versus 7.5%—underscores just how decisively the PPI data has shifted expectations. The narrowing odds for a hold suggest diminishing conviction among market participants that the Federal Reserve will keep rates unchanged in September.