CME Predicts Low Probability of Fed Rate Cuts by March

The CME's FedWatch tool indicates a mere 5.9% chance of the Federal Reserve cutting interest rates by 25 basis points by March, with a 94.1% likelihood of rates remaining unchanged. According to Jin10, the probability of a cumulative 25 basis point rate cut by April stands at 20.5%, while the chance of maintaining current rates is 78.5%. Additionally, there is a 1.0% probability of a cumulative 50 basis point cut by April. By June, the likelihood of a cumulative 25 basis point rate cut increases to 49.8%.