According to King Ten, CME's "Fed Watch" tool provides insightful data, predicting that the U.S. Federal Reserve is highly likely to keep interest rates the same for the foreseeable future. In June, it forecasts a 91.3% chance that interest rates will remain unchanged and a relatively small 8.7% probability of an interest rate cut of 25 basis points.
Looking a bit further, the "Fed Watch" tool also predicts a 68.6% chance of unchanged interest rates until August, a 29.2% probability of a cumulative 25 basis point rate cut, and a mere 2.2% likelihood of a more significant cumulative rate cut of 50 basis points.
