Fed Rate Hike Probability Drops to 38% as Waller Unlikely to Break Consensus

Analysts expect Fed Chair Waller to maintain current rates, with money markets pricing only a 38% chance of a hike despite inflation concerns.

Woofun AI reports that Federal Reserve Chairman Waller is expected to uphold the prevailing consensus at his upcoming monetary policy committee meeting. Natixis Investment Management strategist Mabrouk Chetouane indicated that Waller will resist pressure for a 25 basis point increase, even though returning inflation to target levels by year-end remains highly improbable.

While analysts broadly anticipate the Federal Reserve will keep rates unchanged on Wednesday, money market data currently reflects a 38% probability of a rate hike.