Markets are nearly certain the Federal Reserve next month will take another step down in the pace of its interest rate increases. Pricing Wednesday morning pointed to a 94.3% probability of a 0.25 percentage point hike at the central bank’s two-day meeting that concludes Feb. 1, according to CME Group data. If that holds, it would take the Fed’s benchmark borrowing rate to a targeted range of 4.5%-4.75%. While the probability is little changed since late last week, economic data Wednesday helped solidify the idea that after a succession of aggressive hikes — four consecutive three-quarter point hikes in 2022, at one point — the Fed is ready to take its foot off the brake a bit more.
Source: CNBC – Bonds
