According to the CME FedWatch Tool, expectations are extremely high for the Federal Reserve to hold steady on interest rates at the upcoming FOMC meeting. ## Fed Likely to Hold Rates Steady The CME FedWatch tool shows a staggering 97.7% probability that the Fed will maintain the current key interest rate. This indicates a strong consensus among traders and investors that the Fed will pause its tightening cycle. ## Minimal Chance of a Rate Cut Conversely, the probability of a 0.25% rate cut stands at a mere 2.3%. This suggests that the market sees little to no chance of the Fed easing monetary policy in the near term. The Fed's decision will be influenced by factors such as inflation data, employment figures, and overall economic growth. A pause allows the Fed to assess the impact of previous rate hikes. ```