After Powell's Speech, Traders Believe Higher Chance of Rate Hike than Rate Cut

BlockBeats News, April 30th, after Powell's speech, Wall Street traders believe that the Federal Reserve is slightly more likely to raise interest rates this year than to cut them, following earlier hawkish signals from policymakers.

Interest rate futures indicate an 11% probability of a rate hike, up from 5% earlier on Wednesday, compared to zero on Tuesday, while the probability of a rate cut is around 2%.

Despite the Fed maintaining language hinting at a rate cut being more likely, three Fed presidents dissented from this decision, with Chairman Powell stating that with inflation persisting, this language may be abandoned soon.