From Investing.com: 2024-05-24 08:10:00

The Fed funds futures are starting to price in a slight chance of a rate hike, although the probability remains extremely low at no more than 1%. Market sentiment is beginning to shift, with the possibility of a rate cut still dominating for the next several FOMC meetings. The US 2-year Treasury yield is reflecting expectations of a lower Fed funds target rate compared to the current 5.25% to 5.50%. Recent economic data shows signs of resilience, with a rebound in the US economy after April weakness and low unemployment rates. The path of inflation remains a key variable that could influence future Fed policy decisions. Fed officials and futures are cautiously exploring the possibility of additional policy tightening, adding a new risk factor to the economic outlook.



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