The likelihood of the Federal Reserve maintaining interest rates in January has surged to 97.2% following the latest nonfarm payrolls data, according to the CME "FedWatch" tool. This marks a significant increase from the pre-release probability of 88.4%. Conversely, the chance of a 25 basis point rate cut in January has plummeted to 2.8%, down from 11.6% before the data release.
Looking ahead to March, the probability of a 25 basis point rate cut stands at 32.3%, slightly down from 35.8% previously. The likelihood of rates remaining unchanged in March has risen to 66.8%, up from 60.6%, while the chance of a 50 basis point cut has decreased to 0.9% from 3.7%.
Fed's January Rate Hike Probability Jumps to 97.2% Post Payroll Data
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