KALSHI PREDICTION MARKET ANALYSIS
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Economics · Fed — July 22, 2026, 5:50pm ET
Fed funds rate after Jul 2026 meeting?

Traders put a real minority on a July hike clearing 3.75%

ABOVE 3.75% 23% · 4.3xat publish

The Fed’s next statement lands July 29. The target range already sits at 3.50%–3.75%. The live debate in this market is whether the upper bound moves above 3.75% — a hike — or stays put.

Snapshot

FED FUNDS UPPER BOUND AFTER JULY MEETING Above 3.75% 23%Above 4.00% 2% 0%10%20%30%40% May 2026Jun 2026Jul 2026

How this market pays

You’re betting on how high the upper bound of the federal funds target range sits after the July 29 announcement. Each line is its own Yes/No — “is the published upper bound above this number?” — so a hike to 4.00% can pay several easier Above bets at once.

Your bet Chance Wins if… $100 bet pays
Above 3.50% 100% upper bound greater than 3.50% after the meeting ~$100
Above 3.75% 23% upper bound greater than 3.75% (a hike from today’s 3.75% ceiling) ~$412
Above 4.00% 2% upper bound greater than 4.00% ~$4,679

Example: if the Fed hikes a quarter point to a 3.75%–4.00% range, Above 3.50% and Above 3.75% can both pay Yes; Above 4.00% stays No. Kalshi confirms the upper bound from the Federal Reserve’s official publication.

How to look at each side

The case for Above 3.75% (a hike). The Fed has held the target range at 3.50%–3.75% since the start of 2026, per the July Monetary Policy Report. CME-based tools on July 22 still show a meaningful hike minority — Investing.com’s Fed Rate Monitor put a move to 3.75%–4.00% near 36%, while a FedWatch summary put the hold closer to 73%. This Kalshi line at 23% is the hike bet: the published upper bound has to leave 3.75%.

The case against (hold path). Hold is still the base case in futures tools, and Above 3.75% at 23% means traders mostly expect the ceiling to stay at 3.75%. Above 3.50% already prices as locked because today’s upper bound is already 3.75%. The hold case is simple: July 29 looks like another statement at the same range.

What the odds are saying

Above 3.75% at 23% and Above 4.00% at 2% means the market is pricing a possible quarter-point hike, not a larger jump. That is the first fact to respect.

The day move matters: Above 3.75% jumped about eight percentage points since midnight ET, so the hike minority got louder into the final week before the meeting.

2 reasons the 23% hike price can still move:

  1. Futures tools still disagree on the size of the hike minority. A 63%–73% hold band leaves a wide band for this Kalshi line to re-center before July 29.
  2. A half-point hike is barely priced. Above 4.00% at 2% means almost nobody is paying for a move that clears 4.00% — surprise hawkish guidance would show up here first.

What to watch

Wednesday, July 29, 2:00pm ET: FOMC statement; 2:30pm ET press conference.

Sources