Investors' expectations for an imminent rate cut by the Federal Reserve were dampened as Chairman Jerome Powell emphasized the central bank's commitment to controlling inflation, Reuters reported. Despite the end of the Fed's monetary tightening cycle, Powell's stance against a March rate cut has led to a market pullback, with the CME FedWatch Tool indicating an 80% probability that rates will not be reduced in March.
The market is now pricing in an 80% chance that Jerome Powell and the Fed DO NOT cut rates in March - CME FedWatch Tool https://t.co/f8y8eOmlPt
Inflation-focused Fed shoots down Wall Street’s hopes of March cut w/@DBarbuscia https://t.co/43AWTsRbTd
Inflation-focused Fed shoots down Wall Street’s hopes of March cut https://t.co/43AWTsRbTd
Market continues to pull back rather aggressively on odds of a March Fed rate cut https://t.co/Bm4fBH0GrD
The Fed cemented the end of its monetary tightening cycle, but chief Jerome Powell spoiled the party for markets by pushing back against bets on a March rate cut https://t.co/ZYKyIVG26v
⚠️ ANALYSIS-INFLATION-FOCUSED FED SHOOTS DOWN WALL STREET’S HOPES OF MARCH CUT (Reuters) Investors hoping for imminent rate cuts by the Federal Reserve received a sobering reminder of the U.S. central bank’s focus on fighting inflation, after Chairman Jerome Powell poured cold… https://t.co/TdXoYmkmTx