Fed Likely to Hold Rates in March as Rate Cut Bets Cool Down

March Rate Hike Unlikely

New data indicates a 96% probability the Federal Reserve will hold interest rates steady in March, with only a 4% chance of a 25-basis-point cut. This suggests diminishing market expectations for near-term easing measures.

Rate Outlook for April and June

By April, the probability of a cumulative 25-basis-point rate cut rises to 17.3%, while an 82.1% chance remains for rates to stay unchanged. By June, odds for a 25-basis-point cut reach 43%.

Monetary Policy Outlook

Overall, the Fed appears unlikely to pursue aggressive easing in the near term, with monetary policy expected to remain stable amid current economic conditions.