🏛️ FOMC Meeting Begins: FedWatch Tool Predicts a "Hard Freeze"! ❄️📉
The Federal Reserve starts its first policy meeting of 2026 today, January 27. While the world watches the "Tariff Wars," the smart money is staring at the CME FedWatch Tool. Here is what the data is telling us:
🚨 1. The 97% Certainty: Rates on Hold
According to the latest FedWatch data, there is a staggering 97.2% probability that the Fed will keep interest rates steady at 3.50% – 3.75% tomorrow. After three consecutive cuts in late 2025, Jerome Powell is expected to hit the "Pause" button.📉 2. Why the Pause?
Sticky Inflation: December’s inflation data came in at 2.7%, still above the Fed’s 2% target.
Economic Strength: Despite the U.S. Government Shutdown fears, the economy is showing more resilience than expected, giving the Fed room to stay high for longer.
🏦 3. The "Powell vs. Trump" Tension
The market is not just watching the rates; it’s watching the politics. With President Trump pushing for lower rates and opening investigations into the central bank's independence, Chair Powell’s press conference tomorrow will be a "volatility bomb" for Bitcoin and the DXY (Dollar Index)📈 4. Outlook for 2026
FedWatch futures are currently pricing in only two rate cuts for the entire year of 2026, likely starting in June. This "Hawkish Pause" is keeping Bitcoin pinned below the $88,000 level as traders wait for a clear signal.$BTC #FedWatch #Mag7Earnings #SouthKoreaSeizedBTCLoss #GrayscaleBNBETFFiling
