#FedWatch

The FedWatch tool, powered by CME data, is closely watched by investors to gauge expectations for upcoming Federal Reserve interest-rate decisions. This week, FedWatch signals that markets remain highly sensitive to inflation data, labor market reports, and Fed officials’ comments. Traders are pricing in a cautious approach, with expectations leaning toward either a pause or a gradual rate adjustment rather than aggressive moves. Any surprise in CPI or employment figures could quickly shift probabilities. For crypto and equity markets, FedWatch trends matter because lower rate expectations usually support risk assets, while higher-for-longer rates can pressure prices and increase volatility.