CME Predicts Federal Reserve Interest Rate Movements

The CME's "FedWatch" tool has provided insights into potential interest rate changes by the Federal Reserve. According to Jin10, there is a 17.7% probability that the Federal Reserve will cut interest rates by 25 basis points by March, while the likelihood of maintaining the current rate stands at 82.3%. By April, the probability of a cumulative 25 basis point rate cut increases to 32.4%, with a 63.5% chance of rates remaining unchanged and a 4% probability of a cumulative 50 basis point cut. Looking ahead to June, the probability of a cumulative 25 basis point rate cut rises to 50.4%.