Fed Expected to Hold Rates Steady in May, Crypto Markets Watch Closely
Market participants overwhelmingly anticipate the Federal Reserve will maintain current interest rates at its May FOMC meeting. CME FedWatch data shows just a 9% probability of cuts to the 400-425 basis points range, while Polymarket odds suggest a 90% chance of unchanged policy.
The disconnect between institutional forecasts and market pricing grows more pronounced. Bank of America projects four rate cuts this year, yet traders increasingly bet on status quo monetary policy. This tension creates a high-stakes environment for risk assets, including cryptocurrencies.