Fed Rate Decision Odds Favour No Change in May

Analysts anticipate the Federal Reserve will keep interest rates steady at its May meeting, according to CME’s ‘FedWatch’ tool. A strong 76.1% probability suggests a decision to maintain current rates is the most likely outcome. While 25 basis point rate cuts remain possible, with a likelihood of 23.9%, the outlook for June reveals a slightly different picture. Only 32.1% are forecasting no change in interest rates, followed by more modest chances for future reductions. A cumulative 25 basis point cut stands at 54.1%, and a 50 basis point cut at 13.8%.