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. Source