The market is currently priced for 30 bps of Fed easing this year, with the November meeting priced at about 80%. Of course, there are tail risks priced in for later in the year so I’d peg ‘what’s expected’ at closer to no cuts at all.
Stretching out to August 2025, there are just shy of three cuts priced in.
I wouldn’t expect any big shifts in these numbers at the FOMC but you never know.
This article was written by Adam Button at www.forexlive.com.
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