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Will the Fed lower interest rates at this week's meeting?

The labor market has weakened, suggesting rate cuts, but inflation has proven sticky, and the recently introduced tariffs by President Trump may lead to rising inflation. If the Fed lowers rates, it risks fueling inflation. If it doesn't, it risks a sharp rise in unemployment.

This dynamic makes any decision regarding interest rates feel like a lottery, so anything is possible, but the Federal Reserve typically does not like to surprise the markets, and the markets are not overly optimistic about the chances of a rate cut.

"Currently, the futures contracts for federal funds on the Chicago exchange are pricing in nearly a 100% probability that there will be no change in monetary policy at this meeting," said seasoned Wall Street analyst Stephen Guilfoyle at TheStreet Pro.

According to expert estimates, there is a 99.9% chance that the Fed will maintain interest rates at their current level this week, which is between 4.25% and 4.50%. This is not good news for those in the rate cut camp, including President Donald Trump. Trump has been loudly beating the drum for rate cuts for months, threatening to remove Chairman Powell from his position while calling him "Mr. Too Late" and "a fool" for his decisions to keep interest rates steady.