Market pricing in higher chances of rate cuts by the Federal Reserve

From Investing.com: 2025-06-27 07:56:00

Market expectations for a potential rate cut by the Federal Reserve are increasing, with a 90% probability now estimated for September. Fed funds futures show a 79% chance of rates staying the same in July, down from near 100%. Treasury yields fell for a seventh consecutive day, signaling a shift in market sentiment towards lower rates. Chairman Powell remains committed to keeping rates steady amid uncertainty about the economy. Signs of weakening in the labor market, including rising continuing claims, may prompt the Fed to cut rates sooner than expected. President Trump’s pressure on the Fed to lower rates could lead to the nomination of a new Chair earlier than planned, causing concern among market experts.



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