Federal Reserve May Rate Decision: Predictions Diverge

Experts anticipate differing outcomes for the Federal Reserve’s upcoming rate decision in May. According to the CME’s ‘FedWatch’ tool, a 43% chance predicts the Fed will maintain its current interest rates, with a 57% probability of a 25 basis point rate cut. Looking forward to June, a 20.4% chance sees no change in interest rates. The probabilities shift further for potential cumulative changes. A 25 basis point cut is projected at 49.7%, while a 50 basis point reduction stands at 29.9%.