Key Points
- The Federal Reserve heads into its closely watched policy decision Wednesday with a strong incentive to do absolutely nothing.
- Market pricing in the futures markets are implying almost no chance of an interest rate cut at this week’s meeting, and only about a 1-in-3 probability of a cut at the June 17-18 session.
- Fed Chair Jerome Powell “is going to have to say everything’s on the table. He always says it, but this time, he’s going to have to mean it,” said economist and Fed veteran Vincent Reinhart.
