Fed May Hold Rates Steady All Year: Barron’s

Hopes for Federal Reserve rate cuts in 2025 have faded as strong labor data and a resilient economy suggest no immediate need for monetary easing, Barron’s Daily reported.

The change isn’t tied to stock market performance or political pressure from President Trump, who has criticized Fed Chair Jerome Powell.

Just last week, markets priced in four quarter-point cuts by year-end. Now, the CME FedWatch Tool puts the probability of no cut in June at 70%, with only three cuts likely before Christmas.

The change isn’t tied to stock market performance or political pressure from President Trump, who has criticized Fed Chair Jerome Powell.

Analysts believe Powell is unlikely to react to political noise and will only act if economic indicators warrant it.

Despite a weak first-quarter GDP print, a strong April jobs report has shifted sentiment. Powell’s upcoming press conference will offer further clues about the Fed’s outlook.