#The Federal Reserve kept interest rates unchanged in January.#

The Federal Reserve kept interest rates unchanged at its January policy meeting, a decision that was widely expected by the market. According to CME's "FedWatch," prior to the release of the ADP data, the market had priced in a 95.2% probability of the Fed holding rates steady, with only a 4.8% chance of a 25 basis point cut. While the probability of a rate cut rose slightly after the release of the ADP and initial jobless claims data, the probability of the Fed keeping rates unchanged remained high at 93.1%. This suggests that the market broadly believes the Fed will not change its monetary policy stance in the near term, likely due to the recent positive economic data, particularly the strong labor market, which provides support for the Fed to hold rates steady. Despite this, there is still some divergence in market expectations for future rate moves, with some investors believing the Fed may cut rates in the coming months to address the risk of slowing economic growth.