Odds of Fed rate cut before 2027 drop to 50%

According to pricing data from the prediction market platform Kalshi, the probability of the Federal Reserve implementing at least one interest rate cut before 2027 now stands at only about 50%. This marks a significant drop from the 80-90% probability seen at the beginning of the year. Ahead of the Federal Open Market Committee (FOMC) meeting, the market is effectively pricing in a "higher for longer" environment, with expectations for near-term monetary policy easing having significantly diminished.