Fed still on track for September rate cut after Trump’s move on Cook

By Michael S. Derby and Ann Saphir

(Reuters) -President Donald Trump’s attempt to fire Federal Reserve Governor Lisa Cook is unlikely to affect the U.S. central bank’s path toward cutting interest rates next month, but it creates new uncertainties about what happens after that meeting amid the unprecedented attack on the Fed’s independence.

Financial markets still broadly expect the Fed to cut its benchmark interest rate by a quarter of a percentage point to the 4.00%-4.25% range at its September 16-17 meeting, with futures markets on Tuesday placing an 86% probability on that outcome.

After the September meeting, markets are split on whether the Fed can deliver as much as 50 basis points in additional easing by the end of this year. Investors generally took the Cook developments in str