Fed Rate Cut Probability Remains Below 18%, Minimal Market Impact Expected

The Federal Reserve continues to maintain a cautious stance regarding interest rate adjustments, with only a slight chance of a 25 basis point cut in June (17.1%). This prediction, according to CME’s FedWatch tool, is based on market expectations and investor sentiment about global economic shifts. While the possibility of a rate cut looms, its impact on financial markets remains minimal so far, with little change observed in institutional capital allocations. Crypto markets, including Bitcoin and Ethereum, remain relatively stable without significant liquidity shifts, mirroring the subdued market anticipation.