Prior to the FOMC and Powell press conference the CME’s FedWatch tool had the probability of a June ’24 rate cut around 50% (a couple of tics either side depending on when you last checked.

That’s jumped now to just shy of 70%.

It’ll depend on progress on inflation from here into that June meeting. I think the FOMC is making the same mistake with its ‘transitory’ groupthink and ignoring the danger of continued high inflation.

This article was written by Eamonn Sheridan at www.forexlive.com.


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