Fed Rate Cut Probability Remains Low at 17.1%
- Main event, interest rate possibilities, and market implications reviewed.
- Federal Reserve maintains a cautious stance.
- No major shakeup in crypto markets expected soon.
Summarized data from CME’s FedWatch tool indicates a 17.1% chance of the Federal Reserve cutting its interest rate by 25 basis points in June. This information became available on May 9, 2025, with no substantial chances of immediate rate changes impacting financial markets.
The event underlines market anticipation of the Federal Reserve’s June decision, with broader implications on financial markets and cryptocurrencies potentially changing with new rate cuts.
Federal Reserve’s June rate prediction stands at a 17.1% chance for a cut, per CME. Financial derivatives market data highlights expectations and guides investor sentiment amid global economic shifts. Market participants remain watchful as decisions approach.
Federal Reserve Chair Jerome Powell, alongside officials Beth Hammack and Christopher Waller, continue to exercise a cautious approach. Beth Hammack noted, “If we have convincing data by June, then I think you’ll see the committee move if we know which way to move at that point.”
Current market impacts remain minimal, with institutional capital allocations stable, as the probability of a cut is low. Crypto markets like BTC and ETH remain in a holding pattern, without notable liquidity shifts under existing assumptions.
A potential rate cut paints a picture of financial shifts, which could ripple through risk assets. Federal Reserve decisions historically influence crypto markets, with past rate cuts boosting BTC and ETH prices and DeFi protocols witnessing increased liquidity.
Analysts see several outcomes, including potential ripple effects on regulatory frameworks and technological adaptations within the crypto space. Historical data suggests that actual rate cuts considerably influence crypto market trends and institutional investor behavior.
