Odds of a July interest rate cut ticked up on June 23, as key Federal Reserve officials signaled support for a reduction next month.
New CME FedWatch Tool data from June 23 suggest that the futures market projects a 21 percent chance of a quarter-point rate cut in July, up from 14 percent a week ago.
Investors overwhelmingly expect the rate-setting Federal Open Market Committee (FOMC) to leave the benchmark federal funds rate—a key policy rate that influences consumer borrowing costs and the federal government’s debt servicing payments—in a range of 4.25 to 4.5 percent.
The slight increase comes as two Fed officials signaled support for a rate cut next month, the first since December….