Federated Hermes Strategist Expects Fed to Hold Rates in July; Market Prices Just 22% Probability of 25bp Hike

According to Federated Hermes Chief Market Strategist Phil Orlando, the Federal Reserve is unlikely to raise rates by 25 basis points in July, contrary to growing investor expectations. Orlando stated the Fed should ignore what he views as temporary energy supply shocks and maintain rates unchanged. Currency markets currently price a 22% probability of a 25bp rate hike in July, according to data from the London Stock Exchange Group.
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