Will the Fed’s lower bound reach 2.75% or lower before 2027 — 5% YES
This market treats a Fed lower bound of 2.75% or less by 2027 as a deep longshot, with implied odds of roughly 19-to-1 against, reflecting a collective judgment that such a scenario is highly improbable. The price has been essentially flat over the last 24 hours, indicating no recent shift in this conviction. However, with thin participation of just over $1,000 traded in the past day, this is a tentative price that could swing significantly on modest new flow. For "Yes" to pay out, the Federal Open Market Committee (FOMC) must set the lower or upper bound of the federal funds target range at or below 2.75% at any point before December 31, 2026.
The FED interest rates are defined in this market by the lower or the upper bound of the target federal funds range. The decisions on the target federal fund range are made by the Federal Open Market Committee (FOMC) meetings. This market will resolve to “Yes” if the lower or the upper bound of the target federal funds rate reaches the specified level at any point by December 31, 2026, 12:59 PM ET. Otherwise, this market will resolve to “No.” Emergency rate cuts and hikes outside the regularly scheduled meetings will be considered. The resolution source for this market is the official website of the Federal Reserve at: https://www.federalreserve.gov/monetarypolicy/openmarket.htm. This market may resolve as soon as the relevant data showing the reached level is published.
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