#FOMCMeeting Decision on the Fed Interest Rate This Week
The Federal Reserve's FOMC meets on June 18, and markets are heavily betting that THERE WILL BE NO RATE CUTS. CME's FedWatch tool shows a 99.9% probability that rates will remain between 4.25%-4.50%. Why? Persistent inflation and Trump's tariffs could keep prices high, while a weakened labor market (unemployment at 4.2%, layoffs of up to 80% in 2025) pressures for cuts.
Despite the slim chances now, there is over a 65% probability that it will be reduced to 4%-4.25% by September if inflation cools and employment worsens. However, Bank of America predicts there will be no cuts until 2026. What do you think the Fed will do?
