Federal funds futures nearly split as Waller says he will consider a rate hike if inflation remains hot
MSN·- Federal Funds Futures show nearly equal betting on the Federal Reserve's rate decision for July, with 59% anticipating a pause and 41% a hike. - This represents a notable shift from the previous day's split of 66% to 34%. - The change reflects evolving market expectations regarding monetary policy in a short timeframe.Hot inflation data dims hopes for Fed rate cuts
MSN·- April's Consumer Price Index (CPI) increased by 3.8% year-on-year, the highest rate since 2023, driven by rising energy and housing costs. - In response, bond markets are adjusting their expectations, removing most anticipated rate cuts for 2026, with some traders speculating on a potential rate hike by the Federal Reserve. - The new Fed chair, Warsh, faces challenges from ongoing inflation, political pressures, and a split in the policymaking committee.