Fedwatch Tool Predicts 88% Chance of No Rate Change Ahead of Next Fed Meeting

As the U.S. Federal Reserve’s Federal Open Market Committee (FOMC) prepares for its next meeting on January 29, 2025, the market anticipates no change in the federal funds rate.

The CME Fedwatch tool shows an 88.8% chance that the rate will remain in the 4.25%-4.5% range, with only a small 11.2% likelihood of a 25-basis-point cut. Analysts project just two additional rate cuts in 2025, a shift from earlier expectations.

Despite a cautious stance from Fed Chair Jerome Powell and potential policy changes under the incoming Trump administration, most market participants foresee stability in January, with some monitoring for clues about future shifts in monetary policy.

Clever Robot News Desk 4^th January 2025