#MyCOSTrade #TrumpMediaBitcoinTreasury #CEXvsDEX101 #TradingTypes101 The U.S. Federal Reserve has signaled a cautious approach regarding interest rate adjustments. On June 2, 2025, Federal Reserve Governor Christopher Waller stated that while rate cuts remain a possibility later this year, the central bank is inclined to "look through" temporary inflationary effects stemming from recent tariffs. He emphasized that any decision would depend on continued progress toward the 2% inflation target and a stable labor market .
Market expectations have adjusted accordingly. The CME FedWatch Tool indicates only a 4.6% probability of a rate cut at the upcoming June 17–18 FOMC meeting, a significant decrease from the 66.7% probability projected in May . This shift reflects the Fed's current stance of maintaining the federal funds rate within the 4.25%–4.50% range, where it has remained since December 2024 .
Looking ahead, the Federal Reserve appears to be adopting a "wait-and-see" approach, with officials suggesting that any potential rate cuts are unlikely before September. This strategy allows the Fed to assess the evolving economic landscape, including the impacts of trade policies and inflation trends, before making further monetary policy decisions .
