Investors are increasingly confident that the Federal Reserve will lower interest rates by the end of its September meeting, with markets now pricing in a 100% chance of a rate cut according to the CME FedWatch Tool. This confidence has been bolstered by better-than-expected June inflation data and signs of cooling in the labor market. Economists and investors believe that the Fed will act soon to address inflation nearing its 2% target. Fed Chair Jerome Powell has indicated that recent data is supporting a potential rate cut, though he did not give specifics on timing. Some on Wall Street are urging the Fed to act sooner rather than later, with Goldman Sachs chief economist Jan Hatzius arguing for a cut at the July 31 meeting. The expectation of lower rates has led to shifts in the stock market, with interest rate-sensitive sectors seeing gains while tech stocks have underperformed. Overall, investors are anticipating a more accommodative stance from the Fed in the near future.