The US Central Bank will be meeting on Tuesday and Wednesday, and is expected to smooth the way for an interest rate cut later in the summer. A growing number of economists and investors are expecting a cut at the July 30-31 meeting, CNBC reported.
Reading the market: Fed funds futures are signaling market expectations of about a 20% chance of a rate cut this week and about 80% for July. The Fed last raised interest rates in December to a range of 2.25% to 2.50%.
Heard on the Street: Economist at Jefferies Group who believes rates will remain unchanged: “I am hard pressed to figure out what all the fuss is about… I think the slowdown in the data now is the slowdown we are going to get.”