Fed Expected To Keep Rates Steady Despite Trump's Calls For Cuts

2025-04-24 12:10:00 ET

Summary

• President Trump says he doesn’t plan to fire Fed Chairman Powell, but the calls for rate cuts continue.
• The central bank, however, is expected to leave rates unchanged at next month’s policy meeting.
• The Fed funds futures market this morning is pricing in a 94% probability for no change in the target rate at the upcoming May 7 FOMC meeting. The outlook for Trump’s preference offers better chances in June, which shows a modest 59% probability for a cut.
• The policy-sensitive US 2-year Treasury yield is anticipating a rate cut at some point.

President Trump says he doesn’t plan to fire Federal Reserve Chairman Powell, but the calls for rate cuts continue. The central bank, however, is expected to leave rates unchanged at the next month’s policy meeting. For the moment, it’s still a battle of the unstoppable force vs. the immovable object....

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