Traders expect Federal Reserve to hold rates steady this year
Updated
Updated · Barron's · May 8
Traders expect Federal Reserve to hold rates steady this year
11 articles · Updated · Barron's · May 8
Before June's first policy decision under chair Kevin Warsh, markets priced only a 5.1% chance of a cut after the April jobs report.
Odds of rates ending 2026 unchanged rose to 73.8%, while the chance of a quarter-point cut increased to 10.9% and a year-end hike fell to 14.9%.
The jobs data shifted expectations only slightly, with traders still overwhelmingly expecting the Fed's pause to continue at the June Federal Open Market Committee meeting.
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