Uncertainty Looms Over Federal Reserve's Rate Hike Decision
The Fed funds futures market is now pricing in a 75% chance of a rate hike on May 3, but no hike is priced in for the June 14 meeting. The year-end level is expected to drop to 4.336%, which would be a swift drop from 5.00-5.25% after next week's meeting. The banking crisis resurfaced with First Republic's need for outside help, which could lead to worse credit availability and a new round of bank stress.