The recent data from CME's "Fed Watch'' tool reveals that it's highly unlikely for the Federal Reserve to cut interest rates in February. According to the analytics, the chance of maintaining existing interest rates, falling within the interval of 5.25%-5.50%, stands at a significant 97.4%.
On the other hand, the chances of a 25 basis point cut are as remarkable in their rarity, indicated by the mere 2.6% probability offered by data. However, the prospects change when considering the following month. Projections show that the odds of maintaining the same interest rate by March decrease to 48.7%, the chances of a cumulative 25 basis point cut jump to an even 50%, and the likelihood of a substantial cumulative 50 basis point cut is relatively low at 1.3%.