Update on the outlook for the decision #الفائدة by the American Federal Reserve in May 2025:
According to the CME FedWatch tool, forecasts indicate that the U.S. Federal Reserve will keep interest rates unchanged at its scheduled meeting on May 7, 2025, with a probability of 97.3%. Meanwhile, the likelihood of a 25 basis point rate cut is only estimated at 2.7%.
What do these forecasts mean?
These forecasts show that the markets confidently expect the Federal Reserve to maintain the current interest rate, which ranges between 4.25% and 4.50%, unchanged in the upcoming meeting. This reflects the market's assessment that the U.S. economy is still strong enough to not require a monetary policy adjustment at this time.