Polymarket’s probability of a 25 basis point rate hike by the Fed in July drops to 18%, with expectations of holding rates steady dominating

Monitoring by the PPP Prediction Market Tool shows that on Polymarket, the probability of the "Fed raising interest rates by 25 basis points at the July meeting" has dropped to 18.1%, while the probability of "maintaining the current interest rate" has risen to 81%. The total trading volume for this event has reached $21.74 million.

The market currently widely expects the Fed to remain on hold at the FOMC meeting scheduled for July 28-29. Although the US CPI rose 4.2% year-over-year in May, and energy prices have surged due to tensions in the Middle East, keeping inflationary pressures alive, after the Fed kept the federal funds rate target range unchanged at 3.50%-3.75% at the June meeting, the market is leaning towards waiting for more economic data before deciding on the subsequent policy path. Key economic indicators to be released on July 14, including the US June CPI data, as well as employment and wage figures, will be important variables influencing the outcome of the July meeting.

The Odaily Seer Prophets Channel continues to monitor the prediction market, seeing changes before they are priced in.