Fed Rate Cut Unlikely in May: 85% Probability of No Change Amid Trump's Pressure
According to The Kobeissi Letter, there is an 85% chance that no rate cut will occur in May, despite President Trump's calls for lower rates. Fed Chair Powell has indicated a lack of urgency in adjusting rates, influencing market sentiment and impacting trading strategies.
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On April 21, 2025, the financial markets experienced a significant shift in sentiment due to the news that the probability of a Federal Reserve rate cut in May had dropped to 85%, according to Kalshi (KobeissiLetter, April 21, 2025). This development came despite persistent calls from President Trump for lower rates. Fed Chair Powell's recent statement that he is
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.