AdvertisementMarket participants appear to interpret Musalem’s comments as indicative of a shift towards more hawkish sentiment among Fed officials, potentially reducing the likelihood of rate cuts in upcoming meetings. This development is consistent with current market pricing, which shows a decrease in the probability of rate cuts between July and October. Key TakeawaysMusalem’s statement suggests a more hawkish stance among some Fed officials, reflecting support for gradual rate hikes. Markets appear to interpret these remarks as reducing the likelihood of rate cuts in the near term. Current market pricing is consistent with a decreased expectation of rate cuts between July and October 2026.