Traders See Less Than 10% Chance of Fed Rate Cut This Month
With another Federal Reserve interest-rate decision coming down the pike, investors see the chances of another cut getting slimmer.
The odds of a quarter-point reduction at the Jan. 31 meeting are now at 9%, down from 12% a week ago and 28% this time last month, according to the CME FedWatch Tool.
Concerns that the last mile of getting inflation back to target could be tricky, as well as uncertainty about the impact of President-elect Donald Trump’s policies after he takes office on Jan. 20, are forcing traders to re-assess.