Why Will The Fed Lower Rates in September Rather Than Wait?

One obvious answer is that the fiscal deficit is $1.5 Trillion as of the end of July, which means that the U.S. will be looking at a fiscal deficit approaching $2 Trillion as of fiscal year-end September 30th.

The Fed will be doing Treasury a favor by lowering its Fed Funds rate, which will help alleviate the United States’ growing $35 Trillion-plus debt burden (see data below the paywall).