Federal Reserve to Hold Rates on July 29; Market Prices 77% Odds of September Hike

CME2.11%
The Federal Reserve is expected to leave interest rates unchanged at 3.50%-3.75% on July 29, with markets pricing an 68.5% probability, according to the CME FedWatch tool as of July 28. However, the real focus is September: FedWatch shows a 77.4% chance that rates will be higher by the September 16 meeting, composed of a 56.3% probability of one quarter-point hike and a 21.1% chance of two increases. Fed Chair Kevin Warsh has removed forward guidance from recent statements, leaving the September direction uncertain.
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