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TRADERS NOW SEE RATE HIKE AS MORE LIKELY THAN RATE CUT THIS YEAR
Wall Street traders now see a slightly higher chance of a Federal Reserve rate hike than a cut this year, following hawkish signals from policymakers.
Interest-rate futures show an 11% chance of a hike, up from 5% earlier Wednesday and zero on Tuesday, while the odds of a rate cut sit around 2%.
Although the Fed kept language suggesting cuts are more likely, three Fed presidents opposed it, and Chair Jerome Powell signaled it could be dropped soon as inflation remains persistent.
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MARKETS SLASH FED CUT ODDS TO COIN FLIP BEFORE 2027
Kalshi pricing now shows only a ~50% chance of any Fed rate cut before 2027, down sharply from 80–90% earlier this year.
As the FOMC meets, markets are effectively pricing a “higher-for-longer” regime, suggesting little confidence in near-term easing.
kalshi.com/markets/kxrate…
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