Federal Reserve interest rate predictions for January and March 2023

As reported on January 8th by CME’s “FedWatch,” the likelihood of the Federal Reserve sustaining interest rates this month is 88.4%, with a modest 11.6% chance of a 25 basis point cut.

Looking ahead to March, there’s a noteworthy 40.3% probability of a cumulative 25 basis point reduction in rates, alongside a 4.3% chance for a total of 50 basis points cuts, with a 55.4% likelihood to maintain current rates.