JUST IN: Markets no longer expect the Fed to hike rates next month

Markets are repricing the near-term policy path as the Federal Reserve is no longer expected to raise rates next month. A less restrictive outlook typically eases financial conditions, compresses front-end yields, and weakens the USD while supporting risk assets through lower discount rates and improved liquidity expectations. The shift can drive sharp positioning adjustments across FX, rates, equities, and crypto in the short term.