Fed Stands Firm, Exhibits Hawkish Stance in March

Investors React to the Fed’s Decision; Anticipate Rate Cuts in 2024

Market watchers were not surprised by the Federal Reserve’s decision to keep rates unchanged today, but speculation about future rate cuts is growing. According to the CME FedWatch Tool, prior to the announcement, investors had already priced in a 65% chance of a rate cut at the Fed’s next meeting in March. However, following the policy announcement, those odds diminished to just over 50%. This signals a change in investors’ outlook for the remainder of the year.