Will The Fed Cut Rates This Week? Here’s What Stocktwits Users Think

The Federal Reserve is all set to make its next interest rate decision on Wednesday amid mounting political pressure from U.S. President Donald Trump to cut benchmark rates to boost the economy.

However, data from CME Group’s Fedwatch tool indicates a 99.9% probability that the Fed will maintain interest rates at the current 4.25% to 4.5% range.

This is despite recent economic data suggesting that the central bank has better reasons now to cut rates than it did when President Trump was berating Federal Reserve Chair Jerome Powell.

Inflation rose slower than expected in May at 2.4%, rising by 0.1% instead of an estimated 0.2%.

The labor market has weakened as well, with hiring falling to 139,000 jobs in May, down from 147,000 in April.

The economic data notwithstanding, the market thinks there is virtually no chance of a rate cut this week.

The Federal Reserve has maintained a cautious stance amid economic uncertainties caused by President Donald Trump’s tariff war.

But what do users on Stocktwits think?

According to a recent poll on the platform, of the nearly 34,000 votes, 62% expect no changes in rates this week.

Surprisingly, however, 26% of voters expect the Fed to announce a 25-basis-point cut, while 12% expect a surprise hike.

The Fed has also announced a meeting later this month to discuss easing leverage requirements for larger banks, according to a Reuters report.

The central bank announced a meeting scheduled for June 25 to discuss possible changes to the supplementary leverage ratio.

According to the provisions, banks are required to set aside capital against assets, regardless of their risk profile.

This comes after the confirmation of Fed Governor Michelle Bowman as the top regulator at the institution, and years of clamoring by banks to either exempt traditionally safe assets or revise the formula to calculate the capital to be set aside for this purpose.

Meanwhile, the benchmark 10-year Treasury yield fell seven basis points to 4.383% on Tuesday.

On the equity front, markets declined after President Donald Trump’s warning to Iran for an “unconditional surrender.”

The SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.84% at the time of writing, while the Invesco QQQ Trust (QQQ) fell 0.48%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: As Trump Considers Sending JD Vance Or Steve Witkoff To Mediate, EU Warns Israel-Iran Conflict Could Worsen

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