Fed Keeps Rate Unchanged! Markets Now Price In 100% Probability of a Cut in July!
The Federal Reserve (Fed) had voted 9-1 to keep the interest rate in a target range of 2.25% to 2.5%. Meanwhile, markets expect a certain cut in July.
On June 19, 2019, the Federal Reserve (Fed) had voted 9-1 to keep the interest rate in a target range of 2.25% to 2.5%.
The Fed left rates unchanged, dropping the word “patient” while saying it would “act as appropriate” to sustain the economy in describing its approach to policy. Markets now price 100% probability of Fed rate cut by July as it took stock of rising trade tensions and growing concerns about weak inflation. Meanwhile, 80% see a probability of another cut in September and 41% probability of a 3rd cut in December.