Market expectations have declined to reduce interest rates in America this year

yousef
economy
yousef13 February 2024Last Update : 2 weeks ago
Market expectations have declined to reduce interest rates in America this year

Market expectations to reduce the interest rate in the United States decreased next May to “unlikely” from “potential”, after the inflation report for the month of January, which showed unexpected growth.

The “Vid Watch” tool of the American stock exchange operator “CME” showed that the Federal Reserve reduced the interest rate in May is largely incomplete.

According to the latest federal funds data data, the probability of reducing interest rates increased by 25 basis points in May to 37.5%, after it was 52.2% on Monday.

At the same time, the risk of keeping the Federal Reserve on the interest rates increased unchanged to 59.6%, from 39.3% yesterday, according to the tool data.

The possibility of reducing interest rates in June was 79% (with all estimates: 25 basis points, 50 basis points and 75 basis points), a decrease from 92.2% on Monday, while the possibility of keeping interest rates is 21%, compared to only 7.8% yesterday.

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