Woofun AI data shows that CME's "Fed Watch" tool currently prices in an 85.6% probability of the Federal Reserve maintaining interest rates at their current levels during the July meeting. Conversely, the market assigns a 14.4% probability to a cumulative rate increase of 25 basis points by that date.

Looking ahead to September, the outlook shifts significantly. The probability of keeping rates unchanged drops to 41.4%, while the chance of a cumulative 25 basis point hike rises to 51.2%.

Additionally, there is a 7.5% probability of a cumulative 50 basis point increase by the end of the third quarter.