đŠ #FedWatch â Interest Rate Outlook (February 2026)
đ Latest Fed Decision
- Current Fed Funds Rate: 3.50% â 3.75%
- Decision (Feb 2026): The Federal Reserve kept rates unchanged, signaling caution amid slowing inflation and political pressure.
- Committee Split: The decision was not unanimous, showing internal debate within the FOMC.
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đ Market Context
- Inflation has cooled but remains above the Fedâs 2% target.
- Labor market strength and GDP sustainability are under review.
- Markets are speculating whether a rate cut could come in March, but Fed officials remain cautious.
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đ·ïž Key Takeaways
- Fed is prioritizing stability over aggressive easing.
- Bond yields and equities are reacting to the âhigher for longerâ stance.
- Dollar strength persists as traders await clarity on March policy.