The pressure on Federal Reserve Chair Jerome Powell to cut interest rates is mounting. But traders don’t see him caving.
The market is even more confident the Fed will hold interest rates steady next month despite U.S. President Donald Trump urging the central bank to lower borrowing costs. Trump ramped up his criticism of Fed Chair Jerome Powell Monday, calling him a “major loser” and reiterating that he should cut rates now.
But traders are pricing in a 91% chance of the Fed keeping rates steady when it meets next month, up from 85% a day ago, according to the CME’s FedWatch tool. The probability of a quarter-point cut in June has also fallen to 62%, from 63%.