πŸ“° Full Story

Markets widely expect the Federal Reserve to cut interest rates by 25 basis points at its June meeting.

Data Supporting the Cut

  • Employment: April non-farm payrolls added only 85,000 jobs, far below the expected 180,000
  • Inflation: Core PCE price index dropped to 0.1% month-over-month, the lowest since 2021
  • Manufacturing PMI: Contracted for the third consecutive month, indicating ongoing economic slowdown

Market Expectations

Federal funds rate futures show a 78% probability of a 25 basis point cut in June, up significantly from 52% at the start of the month.

Wall Street analysts broadly agree that the Fed will deliver clearer dovish signals at its next meeting.

Source: Bloomberg, CME FedWatch