The Federal Reserve is expected to keep interest rates unchanged in June, with a 92.8% probability according to CME's "FedWatch" tool. The tool also indicates a 7.2% chance of a 25-basis-point rate cut. Looking ahead to July, the probability of maintaining current rates drops slightly to 88.8%, with a 10.9% chance of a 25-basis-point cut and a 0.3% chance of a 50-basis-point cut. By September, the likelihood of holding rates steady decreases further to 83%, while the chances of a 25-basis-point and 50-basis-point cut rise to 16% and 1%, respectively.
Fed Likely to Maintain Interest Rates in June, CME Tool Indicates
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