The Federal Reserve (Fed) will hold interest rates steady at 2.25-2.50% this year and not cut rates until the third quarter next year, according to the latest Reuters poll of 100 economists conducted in six days to June 12.
While the latest consensus points to rates on hold this year, the probability of a Fed rate cut has significantly increased in over the past four weeks.
For instance, 40 of 100 common contributors expect the Fed to cut rates by 25 basis points sometime this year compared to just eight respondents in the previous poll.
It is worth noting that the Fed funds futures market is already pricing in an 80% chance of a rate cut by July. Even so, most analysts expect the US Dollar to remain bid for the rest of this year.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.