According to FedWatch, there is almost a 100% chance that the interest rate will stay the same during Wednesday’s decision. The possibility of a clear rate reduction before December has diminished. Experts at Reuters predict that the Federal Reserve will only implement two rate cuts this year, with the first one expected to occur in September. At the start of 2024, the average estimate for rate cuts by Fed members was at 75 basis points. Back then, the market was anticipating a 150 basis point cut. Additionally, new 3-year average interest rate forecasts will be revealed on Wednesday evening.
