BlockBeats News, July 16: Market expectations point to a highly probable scenario where the Federal Reserve will hold rates steady in July, according to CME’s FedWatch data. The cumulative probability favors unchanged policy at 97.4%, with only a 2.6% likelihood of a 25 basis point cut during this month.
The real drama unfolds in September, where the Fed faces a more balanced outlook. CME’s derivatives market shows a 45.1% chance the central bank maintains its current stance, while the cumulative probability of a 25 basis point rate cut stands at 53.5%. A more aggressive 50 basis point reduction carries minimal odds at just 1.4%.
These metrics reveal investor sentiment anticipating potential monetary easing in the coming months, though the July meeting appears virtually locked in for policy continuity.
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Fed Likely to Maintain Current Rates in July as Markets Await September Signals
BlockBeats News, July 16: Market expectations point to a highly probable scenario where the Federal Reserve will hold rates steady in July, according to CME’s FedWatch data. The cumulative probability favors unchanged policy at 97.4%, with only a 2.6% likelihood of a 25 basis point cut during this month.
The real drama unfolds in September, where the Fed faces a more balanced outlook. CME’s derivatives market shows a 45.1% chance the central bank maintains its current stance, while the cumulative probability of a 25 basis point rate cut stands at 53.5%. A more aggressive 50 basis point reduction carries minimal odds at just 1.4%.
These metrics reveal investor sentiment anticipating potential monetary easing in the coming months, though the July meeting appears virtually locked in for policy continuity.