Polymarket Traders: 32% Chance of No Fed Rate Cuts

Fed's Hawkish Shift Alters Market Expectations for Interest Rate Cuts

In a significant departure from earlier predictions, traditional markets have scaled back their expectations from anticipating six 25 basis points rate cuts, now only foreseeing two. This adjustment reflects growing sentiment on platforms like Polymarket, where the probability of the Federal Reserve (Fed) maintaining steady rates into 2024 now stands at 32%, a marked increase from March's mere 7%. As the likelihood that the Fed will leave interest rates unchanged this year surges, a hawkish wave sweeps through the market sentiment, potentially cooling the demand for risk assets including cryptocurrencies and technology stocks.