When Will the Fed Decide? Pre-Meeting Blackout Begins, Experts Predict Pause

The Federal Reserve is poised to hold interest rates steady at its May 7 meeting due to ongoing economic uncertainty. Market experts anticipate a pause as the FOMC awaits crucial economic data releases. According to CME FedWatch Tool, fixed-income markets forecast the federal funds rate will remain between 4.25% and 4.5%. Other forecasting models like Kalshi and Polymarket also suggest a roughly 90% probability of no rate change in May. However, June is becoming a possibility for a rate cut.