• bitcoinBitcoin$119,336.792.61%
  • ethereumEthereum$3,416.8712.13%
  • rippleXRP$3.077.08%
  • binancecoinBNB$709.943.64%
  • solanaSolana$174.798.92%

Traders Expect Two Fed Rate Cuts After US CPI Report

Traders Expect Two Fed Rate Cuts After US CPI Report

Traders expect two Fed rate cuts starting in September after May’s cooler-than-expected U.S. CPI data boosted market sentiment.

Traders got a big boost after the latest US CPI report, which showed lower prices than expected.

Based on the FOMC meeting in September, these market players now think there could be two rate cuts by the Fed.

Traders Think That Fed Will Cut Rates Twice In 2025

CME FedWatch data shows that traders are betting on two rate cuts by the Fed this year after the US CPI data comes out.

These traders think the Federal Reserve will lower interest rates starting at the FOMC meeting in September.

There is a 57% chance that the FOMC will lower rates by a quarter point in September.

This would decrease the base rate to 4% and 4.25%.

CME FedWatch data
CME FedWatch data

These traders also think that the Fed will keep interest rates the same at the meeting in October and cut rates again at the meeting in December.

After the October FOMC meeting, there is a 44% chance that rates will stay between 4% and 4.25%.

Also, there is a 40.8% chance that these rates will drop another quarter point to somewhere between 3.75% and 4% after the meeting in December.

Fed Target Rate
Fed Target Rate

This change happened after the May US CPI statistics came out. CoinGape said that the May CPI was 2.4% year-over-year, which was less than what was expected.

Plus, it increased by 0.1% month-to-month, which was less than the 0.2% that was expected.

Not only that, but the Core CPI was also lower than expected.

This is good for the crypto market because it makes the case for Fed rate cuts even stronger now that inflation in the US is going down.

However, traders think the Fed will keep rates the same at the June FOMC meeting next week.

It was said on CoinGaope that Powell and the FOMC will cut rates 0.1% of the time.

At the same time, there is an 81% chance that interest rates will stay the same at the July FOMC meeting.

US President Donald Trump keeps pushing for a Fed rate cut, even though Powell doesn’t want to do it.

Trump recently asked the Federal Reserve to lower interest rates by 100 basis points.

JD Vance, the vice president, wants the Fed to cut rates. “Monetary malpractice” is what Vance called the Fed’s failure to cut rates.

Previous Article

Pinterest Tests AI Tool for Shoppable Collage Ads

Next Article

The Browser Company Launches AI-First Browser Dia