Middle East Tensions Impact U.S. Federal Reserve Rate Expectations

Geopolitical tensions in the Middle East are causing fluctuations in oil prices, raising potential inflation risks and diminishing expectations for interest rate cuts. According to BlockBeats, data from CME's 'FedWatch' indicates a mere 2.6% probability of a 25 basis point rate cut by the Federal Reserve in March, with a 97.4% likelihood of maintaining current rates. Looking ahead to April, the probability of the Federal Reserve keeping rates unchanged stands at 85.3%, while the chances of a cumulative 25 basis point rate cut are at 14.4%, and a 50 basis point cut is at 0.3%. The upcoming Federal Open Market Committee (FOMC) meetings are scheduled for March 18 and April 29.