President Trump's decision to delay military action against Iran has eased immediate geopolitical pressures, impacting Federal Reserve policy expectations. U.S. Treasury yields remained stable following the announcement, with a 67% probability that the Fed will adopt a "cut-pause-pause" strategy before June. This development has led to fluctuations in Fed-related prediction markets, reflecting traders' cautious stance amid reduced geopolitical risk. Market data indicates an 84.5% probability of no rate change, up from 80% a week earlier, suggesting increased confidence in near-term monetary policy stability. The delay in military operations has diminished the direct threat, reducing pressure on the Federal Reserve to implement significant rate cuts. However, the market remains vigilant, with traders adjusting positions in response to ongoing diplomatic developments and potential changes in geopolitical or economic conditions.