FedWatch tool indicates a 96.9% probability that the Fed will maintain current interest rates at today's FOMC meeting

FedWatch tool indicates a 96.9% probability that the Fed will maintain current interest rates at today's FOMC meeting

The Federal Reserve is set to announce its latest decision on interest rates today, with a high probability of maintaining the current rates. According to the CME FedWatch Tool, there is a 96.9% chance that the Fed will keep interest rates steady [1]. This decision comes amidst ongoing pressure from President Donald Trump, who has repeatedly urged the central bank to lower interest rates.

The Fed has held interest rates steady for seven consecutive months, despite Trump's public criticism. The central bank has been cautious, taking a wait-and-see approach as it monitors potential inflation due to Trump's tariff policy [1]. This approach is in line with the Fed's dual mandate to keep inflation under control and maximize employment.

Investors and financial professionals are closely watching the Fed's decision, as it could have significant implications for the economy. A rate cut could stimulate economic activity and boost employment, but it could also fuel inflation, which the Fed is concerned about [1]. The Fed has forecast two quarter-point interest-rate cuts over the remainder of 2025, but this depends on how the data evolves [1].

In recent weeks, Trump has also criticized the Fed for cost overruns tied to the central bank's $2.5 billion building renovation project. However, the Fed attributes the spending overruns to unforeseen cost increases [1]. Despite Trump's criticism and threats, the Fed remains independent and guided by its mandate to keep inflation under control and maximize employment.

While the Fed is expected to hold rates steady today, the market will be watching closely for any signs of an impending rate cut in September. The Fed's post-meeting statement will provide important insights into the central bank's thinking and future policy direction.

References:
[1] https://abcnews.go.com/Business/fed-expected-hold-interest-rates-steady-resisting-trumps/story?id=124185010
[2] https://www.bnnbloomberg.ca/investing/2025/07/30/us-stocks-hold-steady-ahead-of-fed-announcement-on-rates/
[3] https://www.usatoday.com/story/money/2025/07/30/federal-reserve-interest-rate-cuts-live-updates/85430906007/