Federal Reserve May Keep Interest Rates Steady

The CME Group’s ‘FedWatch’ tool shows a strong likelihood for the Federal Reserve to keep interest rates unchanged in May. With a near-certain 94.3% chance of maintaining the current rate level, only a small 5.7% probability suggests a potential 25 basis point decrease. Looking ahead to June, a 35.9% chance predicts continued rates’ status quo. Conversely, there is a higher likelihood of a cumulative 25 basis point cut at 60.5%, while a 3.6% probability suggests the possibility of a more substantial 50 basis point reduction.