Geopolitical Escalation Exacerbates, Weakens Rate Cut Expectations, March Fed Rate Cut Probability Only 2.7%

BlockBeats News, March 3rd: Amid escalating geopolitical tensions in the Middle East, concerns about rising oil prices have heightened potential inflation risks and dampened rate cut expectations. According to CME's "FedWatch" data, the probability of a 25 basis point rate cut by the Fed in March is only 2.7%, with an 88% probability of rates remaining unchanged.

The probability of the Fed holding rates steady until April is 87.3%, with a 12.5% probability of a cumulative 25 basis point cut and a 0.2% probability of a cumulative 50 basis point cut.

The next two FOMC meeting dates are March 18th and April 29th.