As was widely expected, the Federal Reserve didn’t make any major moves at its July 29-30 meeting. Rate cuts are coming, but timing remains an open question.
Right after the Fed’s most recent decision to hold the target range for the federal funds rate steady at 4.25% to 4.50%, which came the same day the Bureau of Economic Analysis reported better-than-expected second-quarter GDP growth, odds of rate cut in September dropped well below 50%.
As of July 30, the CME Group’s FedWatch tool – which tracks the implied probability of Fed moves based on 30-day fed funds futures – showed a 41.3% chance the Fed will cut by 25 basis points, or 0.25%.
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