Fed Expectations Don’t Budge After Minutes. Next Rate Cut Seen in July.
The market’s expectations for the Federal Reserve’s next move on interest rates held steady after the publication of minutes from the Federal Open Market Committee’s January meeting.
Traders are still expecting an extended pause on rate cuts with the next quarter-point reduction coming in July, according to the CME FedWatch tool. It sees a 44.2% chance of that move happening, compared with odds of exactly 44% yesterday.
The chance that rates will stay unchanged through July was at 40.4% today, compared with 42.1% yesterday.