The CME "FedWatch" tool indicates a 68.5% probability that the Federal Reserve will keep interest rates unchanged in July. Meanwhile, there is a 31.5% chance of a 25 basis point rate hike. Looking ahead, the probability of maintaining current rates by September drops to 35.7%, with a 49.2% chance of a 25 basis point increase and a 15.1% chance of a 50 basis point hike.
By October, the likelihood of unchanged rates further decreases to 27.8%. The probability of a 25 basis point hike stands at 46.2%, a 50 basis point hike at 22.6%, and a 75 basis point hike at 3.3%. These projections come ahead of the upcoming Nonfarm Payrolls report, which could influence future rate decisions.
Fed Likely to Maintain Interest Rates in July, CME Data Shows
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