🚨POLYMARKET ODDS OF FED RATE CUTS IN 2026 PLUMMET: ZERO CUTS NOW AT 77.6%!
Prediction markets on Polymarket show the probability of any Fed rate cut in 2026 has dropped sharply, with zero cuts now priced at ~77.6%.
Driven by concerns over persistent inflation from tariffs and AI-related pressures on energy and tech costs.
Markets are increasingly betting on steady or higher rates through the year.
Six months ago the consensus was two rate cuts in 2026.
This week, in Warsh's first meeting, the Fed erased that — and put a hike back on the table. Rates held at 3.5–3.75%, easing bias gone, inflation at a 3-year high.
But the real signal isn't the rate. It's that Warsh cut the statement to 130 words and declined to publish his own forecast.
A central bank that stops pretending to know the future is telling you something.
The macro isn't a thing you predict. It's a thing you position for.
Built for higher-for-longer, or just hoping for cuts?
🚨 BREAKING
🇺🇸 THE FED JUST OFFICIALLY PAUSED RATE CUTS UNTIL 2027!
INFLATION IS ACCELERATING, AND NEW FED CHAIR KEVIN WARSH IS PREPARING MARKETS FOR INTEREST RATE HIKES.
THIS IS BAD NEWS FOR THE MARKETS…
Joseph breaks down why Kevin Warsh’s recent push for rate cuts stands out, especially given his long public track record at the Fed during and after the financial crisis. @josephwang
Full show available on @RiskTakers000@crypto_banter@Banter_Clips
Incoming Fed Chair Kevin Warsh cannot "credibly" argue for rate cuts "at this stage," says Christopher Smart, managing partner and founder of the Arbroath Group