🚨 Fed Rate Cut Odds Rise to 23.2% for March Meeting
According to the latest CME FedWatch Tool, market expectations for a Federal Reserve interest rate cut at the March 18 meeting have increased, with traders now pricing in a 23.2% probability of a 25 basis point reduction.
Key Probabilities (as of latest data):
Rate Cut (25 bps): 23.2%
Hold (3.50% – 3.75%): 76.8%
Context:
This shift follows the Fed’s decision to hold rates steady in January. With inflation data showing gradual cooling and labor market conditions normalizing, traders are beginning to increase bets on earlier policy easing.
Market Implications:
A March cut remains the less likely scenario, but rising expectations could influence:
Short-term bond yields
U.S. dollar strength
Equity and crypto market sentiment
Traders will closely monitor upcoming inflation (CPI) and employment reports for further clues on the Fed’s timeline.
