Will the Fed’s lower bound reach 3.0% or lower before 2027 — 7% YES
At 7%, this market treats the Federal Reserve's lower bound hitting 3.0% or below by 2027 as a deep longshot, with implied odds of roughly 13.3-to-1 against. The price has remained essentially flat over the last 24 hours, indicating no significant shift in conviction, though the thin trading volume of only $370 in that period suggests this is a tentative price easily swayed by modest flow. For a "Yes" resolution, the FOMC would need to set either the lower or upper bound of the federal funds target range at or below 3.0% at any point before December 31, 2026, with plenty of time remaining for such a move.
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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