How Many Rate Cuts Are Left in the Fed’s Arsenal

From None: 2025-06-17 08:31:00

The Fed is set to make a decision on monetary policy on Wednesday, with expectations for no changes but focus on forward guidance and updated projections. Amid heightened uncertainty from the Israel-Iran conflict, investors are closely watching for clues on future rate cuts. Despite lower than expected inflation data, rising oil prices and strong economic growth could pose upside risks to inflation. Economists expect the next rate cut in September, with market participants pricing in a second cut by December, but the Fed may signal only one cut before the end of the year. Euro/Dollar hits almost four-year high, with potential for limited retreat even if the Fed appears hawkish. Bulls may target 1.1635 and 1.1910 resistance levels, with a bearish reversal needing a dip below 1.1060.



Read more at None: How Many Rate Cuts Are Left in the Fed’s Arsenal