Markets are now pricing-in a 42% chance of ZERO interest rate...

Markets are now pricing-in a 42% chance of ZERO interest rate cuts in 2024.

The last time interest rate expectations were at this level was in October 2023.

By comparison, in January the market saw only a 10% chance of no cuts in 2024.

In just a few months markets have gone from 6-8 rate cuts in 2024 with reductions beginning in March to a base case of 1 rate cut this year.

This was the fastest shift in Fed expectations in years as inflation is officially back on the rise.
Tomorrow’s FOMC meeting is huge.

https://x.com/KobeissiLetter/status/1785435501077655673