CME FedWatch: Markets price 85.6% odds of Fed holding rates steady in July
AI Market Summary
CME FedWatch implies a high probability (85.6%) of a July hold, while September pricing leans toward a 25 bp cumulative hike (51.2%), keeping policy uncertainty concentrated in late summer. A near-term pause typically dampens immediate rates volatility, but the still-meaningful hike odds sustain sensitivity across USD rates and risk assets. The curve's repricing risk remains tied to incoming inflation and labor data.
Impact level
● Medium
Affected assets
NCSIDXY2USD/USDT-0.01%
AI Insight · NCSIDXY2USD/USDTAI Insight
● Neutral
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CME's FedWatch tool shows markets assigning an 85.6% probability that the Federal Reserve will keep interest rates unchanged at its July meeting. The odds of a cumulative 25-basis-point increase stand at 14.4%.
For September, FedWatch indicates a 41.4% chance of rates remaining unchanged. Markets see a 51.2% probability of a cumulative 25-basis-point hike and a 7.5% probability of a cumulative 50-basis-point hike by then.