The upcoming meeting of the Federal Reserve (Fed) is prompting active discussions in financial markets, focusing on potential changes to interest rates.
Market Situation Ahead of Fed Meeting
As the Fed meeting on July 30 approaches, experts believe that current interest rates will remain unchanged. This will mark the fifth consecutive meeting without any rate adjustments, despite ongoing inflation concerns and robust economic growth.
Investor Sentiment Driven by Fed Signals
According to data from Kalshi, the likelihood of two interest rate cuts in 2025 stands at 36%, a decrease from earlier months when two cuts seemed more probable. The odds for just one cut have climbed to 25%, while chances of no cuts at all have risen to 20%. Investor expectations for potential changes in September have begun to fade.
September Rate Cut Chances Under Scrutiny
All focus is on the post-meeting statement. Investors are searching for indicators that could suggest a policy change later this year. Although hope for a September cut still exists, the absence of definitive signals could lead to sharp yield jumps if the market feels disappointed.
The future of rate cuts remains open, but recent events indicate that reductions may not occur as soon as previously expected. New economic data and Fed commentary will play a critical role in shaping the emerging scenario.
