Federal Reserve policymakers are set to lower interest rates on September 17th after months of pressure from Trump, ending a nine-month pause and launching what could be an extended rate-cutting cycle. CME Group’s FedWatch Tool shows a 100 probability of a 25-basis-point cut to 4.00 to 4.25 and an 11 chance of a larger 50-basis-point move, according to Benzinga. Traders expect additional cuts in October and December, with odds of 84 and 75, respectively. Stocks are trading near record highs, but market veteran Ed Yardeni warned the Fed risks overstimulating an already strong economy, citing GDP growth tracking at 3.0 and ongoing labor shortages. Yardeni argued that the labor market’s problem is a worker shortage, and Fed rate cuts won’t solve the undersupply, limiting labor demand. Yardeni Research maintains a bullish outlook, targeting 6,600 on the S&P 500 by end-2025 and 7,700 by 2026.