Market Reactions and Treasury Yields Traders are now more confident about an impending rate cut by the Federal Reserve, with CME’s FedWatch Tool indicating a 50% chance as early as March. Interest Rate Outlook and Dollar’s Performance Investors and market analysts are closely watching the Federal Reserve’s next steps, particularly in light of Fed Governor Christopher Waller’s recent remarks suggesting confidence in the current policy stance. Short-Term Forecast Amid signs of cooling inflation and a potential shift in Federal Reserve policy, gold prices are expected to maintain their upward trajectory in the short term.