#DanielNadem

The latest data from the CME FedWatch Tool shows that expectations for a January rate cut are fading fast. Odds have plummeted to just 13.3%, down from nearly 29% only recently. This shift signals that the market is aggressively repricing for a "higher-for-longer" interest rate environment. Investors are becoming increasingly cautious as the prospect of a Fed pivot remains out of reach for now. With this change in sentiment, all eyes are currently on liquidity-sensitive assets. Everyone is watching closely to see how the market absorbs this news and what the next moves from central officials might be.