Traders are growing increasingly confident that the Federal Reserve will cut interest rates again next week. Others on Wall Street think the bar may be even higher for the central bank to hold rates where they are. Currently, trading in the Fed funds futures market suggests an 86% likelihood of a rate cut next week, according to the CME FedWatch Tool. Concerns about the labor market and political perception could be two key reasons for the Fed to keep cutting. "We also think cutting is the path of least resistance from a political perspective," BofA's Bhave said.

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Persons: Dow Jones, Aditya Bhave, BofA's Bhave, Powell, Michael Bloom Organizations: Federal Reserve, CPI, PPI, Bank of America U.S, Fed