CME FedWatch: '97.9% Chance Fed to Hold Rates Steady in August'

IconCryptoNewsTerminal Staff31 Jul, 2024

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CME FedWatch: '97.9% Chance Fed to Hold Rates Steady in August'

Traders are pricing in a 97.9% probability that the Federal Reserve will hold rates steady when it meets in August, according to the CME FedWatch Tool. The probability of a rate cut is seen at 2.1%. The Fed is widely expected to keep rates on hold at its meeting next week, as it takes a wait-and-see approach to the impact of the coronavirus pandemic on the economy. The central bank has already cut rates twice this year, in March and June, in an effort to support the economy. However, the recent economic data has been mixed, with some indicators suggesting that the economy is recovering, while others show that the recovery is still fragile. The Fed is likely to want to see more evidence of a sustained recovery before it begins to raise rates again. The Fed's decision on interest rates will be closely watched by investors and businesses alike. A rate cut would be seen as a sign that the Fed is concerned about the economy and is willing to take action to support it. A rate hike, on the other hand, would be seen as a sign that the Fed is confident in the economy's recovery.

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