Rising Potential Inflation Risk Weakens Rate Cut Expectations, Fed's March Rate Cut Probability Now Only 2.6%

BlockBeats News, March 10. The ongoing turmoil in the Middle East has raised oil prices, increasing potential inflation risks and dampening rate cut expectations. According to CME's "FedWatch" data, the current probability of a 25 basis point rate cut by the Fed in March is only 2.6%, with a 97.4% probability of rates remaining unchanged.

The probability of the Fed holding rates steady until April is 85.3%, with a 14.4% probability of a cumulative 25 basis point rate cut and a 0.3% probability of a cumulative 50 basis point rate cut.

The next two FOMC meeting dates for the Fed are March 18 and April 29.