Federal Reserve Chairman Powell's comments have raised expectations for a rate cut in June, with Goldman economists predicting the Fed is on track for a cut. Citi's Andrew Hollenhorst notes a 70% chance of a June rate cut, up from 57% earlier. Traders are adjusting expectations with an 8.4% chance for a May rate cut and a significant 68.3% chance for a June rate cut after the Fed's dovish message. Interest rate cut expectations have risen following the recent FOMC meeting.
Fed Pivot: Interest Rate Cut Expectations Rise After FOMC Meeting https://t.co/BoLq9MtI1a
J Powell & Co yesterday predicted 3 rate cuts this year. As a result, the chances for the PIVOT @ May 1 FOMC is now 8.4% but @ June 12 FOMC those chances now jump to 68.3% ⚡️✍️ https://t.co/YJTeh7ZfEO
"The Fed delivered a straightforwardly dovish message: rate cuts are coming even if inflation or growth run stronger than expected:" Citi's Andrew Hollenhorst Traders are now pricing in an 70% chance of a June Fed rate cut vs a 57% chance priced in on Tuesday.
Fed on track for a June cut, Goldman economists say https://t.co/TzlV6Ox9CW https://t.co/aTdRPK5n8j
Treasury yields dip after Powell comments bolster hopes for June rate cut https://t.co/i6EvFeTKHY