I think Cutting rates would lower short-term interest rates and could potentially un-invert the yield curve. While some have argued that the inverted yield curve might not be a reliable recession predictor this time, I believe it's too early to conclude. Historically, recessions have often followed the un-inversion of the yield curve, which could happen if three rate cuts totaling a 0.75% reduction in short-term rates boost the yield curve back into positive territory. This could then lead to an official recession declaration. If that happens, it typically signals that the stock market has bottomed and is poised for a subsequent rally.Not only in September, but the futures market is also predicting more than a 50% chance for rate cuts in November and December.

After the recent FOMC meeting, I noticed a change in tone. The Fed is no longer waiting for the inflation rate to go below 2% before cutting rates. In fact, they are already signaling their intention to cut rates in September.

Finally ,Despite robust GDP growth, other signs indicate a slowing economy. The US ISM Manufacturing PMI has been contracting for 20 out of the last 21 months, a trend last seen from 1989 to 1991, which preceded a recession.