Markets Still Expect Fed To Keep Rates Steady For Near Term

2025-05-21 11:27:00 ET

Summary

• Uncertainty about inflation, the economy, and trade policy continue to blur the macro outlook, which in turn supports expectations that the Federal Reserve will leave interest rates unchanged at the next several policy meetings.
• Fed funds futures are pricing in a near-certain probability that the central bank will let its current 4.25%-4.50% target rate stand at the upcoming June 18 FOMC meeting.
• To the extent this key rate moves closer to 5%, it’s reasonable to assume that the market is losing faith in the US government’s ability to control its spendthrift ways.

Uncertainty about inflation, the economy, and trade policy continue to blur the macro outlook, which in turn supports expectations that the Federal Reserve will leave interest rates unchanged at the next several policy meetings....

Read the full article on Seeking Alpha

For further details see: