Most Fed officials support a rate cut this year, although a reduction this July may be too soon, according to the minutes of the Federal Open Market Committee (FOMC) meeting on June 17-18.
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Trade QQQ with leverage“Most participants assessed that some reduction in the target range for the federal funds rate this year would likely be appropriate,” the minutes stated, although only a “couple” of officials supported a July rate cut. This likely refers to Fed Governors Michelle Bowman and Christopher Waller, who said they would support a July rate cut if inflation remains under control.
In addition, “some” policymakers support no rate cuts in 2025 as inflation is still above the Fed’s 2% target.
July Rate Cut Odds at Just 4.7%
CME’s FedWatch tool assigns a 4.7% chance that the Fed will cut rates at the next FOMC meeting on July 29-30. The odds are down from 6.2% yesterday and 23.8% a week ago.
The odds of the Fed holding rates steady in July rose to 95.3%, up from 93.8% yesterday and 76.2% a week ago.
Follow the federal funds rate and other key economic metrics with TipRanks’ Economic Indicators Dashboard.
