Market expects Fed rate to hold steady in January
According to CME FedWatch data, there is a 95% probability that the US Federal Reserve will keep its interest rate unchanged at the January meeting. This indicates strong market confidence in the absence of sudden changes in the near term.
Source CME
The market is essentially pricing in the maintenance of the rate range at 5.25–5.50%, which reduces the risk of unexpected moves by the regulator in the short run. This scenario highlights the current monetary stability and consistency of the Fed’s policy.
The Fed’s future steps remain important for investors, but for now, the market is focused on holding the current course in the immediate future.
