Fed Holds Steady: Market Adjusts Rate Cut Expectations Slightly

Market Reaction After Fed Announcement

Following the latest Federal Reserve decision, interest rate futures suggest a slight decline in the probability of a rate cut in April to 28%. Meanwhile, the odds for a cut in June have risen to 64%, indicating market optimism about the Fed's future moves.

Outlook for Rate Cuts in 2024

Despite a slight drop in expectations for April, markets still anticipate the likelihood of two rate cuts this year. This view is supported by easing inflationary pressures and signs of slowing economic momentum.

• April cut probability at 28%, slightly lower than before
• June cut odds rise to 64%
• Second cut likely by year-end