Fed July Rate Hike Odds Crash to 8% After Unexpected CPI Decline
The probability of a Federal Reserve rate hike at the July 29 meeting plummeted to 8% following a larger-than-expected drop in June CPI, the biggest monthly decline since April 2020.
The odds of a Federal Reserve rate hike at the July 29 meeting collapsed to just 8%, according to market pricing, after June CPI unexpectedly posted its steepest monthly decline since April 2020.
The sharp drop in inflation data surprised analysts and triggered a rapid repricing of Fed expectations. The move was flagged by The Kobeissi Letter, which shared the updated probability figure via social media.
Source: The Kobeissi Letter