Swap Market Predicts Zero Chance of Fed Rate Cut in January

Shift in Market Expectations

Recent data showing a notable decline in the US unemployment rate has eliminated any possibility of a Federal Reserve rate cut in January.

Swap Market Response

The interest rate swap market has reacted swiftly, pricing in a zero probability of a rate reduction this month.

• Drop in unemployment as a key driver
• Policy outlook under renewed scrutiny
• Market sentiment turns cautious

Outlook Ahead

Analysts suggest that sustained economic strength could lead the Fed to delay rate cuts or even hold rates steady under certain conditions.