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Futures traders are putting the possibility of a pause at around 79%, though there is still an expectation the Fed could resume its rate hikes at the July meeting.
A pause would let policymakers assess the progress of their 10 rate increases since last year, bringing the Fed funds rate from near zero to over 5%. Economic data has shown prices are cooling, but other data shows the job market remains tight.
Still, the possibility of a recession is fading according to some economists. Goldman Sachs cut the probability of a recession in the next twelve months to 25% after the deal on the debt ceiling ended that uncertainty. Its earlier outlook had a 35% probability.
Goldman’s 2023 growth forecast is 1.8%.
Fed policy makers will release their own set of projections on economic growth, unemployment and inflation when they release their decision on rates next week.
Here are three things that could affect markets tomorrow:
1. Brown Forman earnings
Spirits maker Brown Forman (NYSE:BFb) is expected to report earnings per share of 42 cents on revenue of $988.7 million.
2. Campbell Soup
Packaged foods giant Campbell Soup Company (NYSE:CPB) is expected to report earnings per share of 65 cents on revenue of $2.2 billion.
3. GameStop reports
Videogame retailer GameStop Corp (NYSE:GME) is expected to report a 12 cent a share loss on revenue of $1.3B.
