President Trump urged the Fed to hold a special meeting to cut interest rates during a White House speech on Monday. “What’s a better time to cut interest rates than now?” he said. “A third-grade student would know that.”
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Forget margin or options. Here's how the pros trade QQQThe Fed is scheduled to hold its Federal Open Market Committee (FOMC) meeting on Wednesday at 2 p.m. Eastern Time and is widely expected to hold rates steady.
U.S.-Iran War Sends Fed Cut Odds Lower
The U.S.-Iran war has only lowered the odds of rate cuts this year, as rising oil and gas prices have contributed to concerns of a revival of inflation. By year-end, the most likely outcome on the CME FedWatch tool at 40.9% is for the Fed to cut rates just once, or by 25 bps. The second most likely outcome at 34.3% is for zero cuts.
Trump has brushed off these concerns, saying that oil prices will “drop like a rock” when the war ends. Treasury Secretary Scott Bessent echoed his stance and said that oil will drop below $80 per barrel after fighting ceases.