Federal Reserve rate markets are telling a hawkish story as traders abandon hopes for aggressive cuts. The Fed held rates at 3.5% to 3.75% at its March meeting, and markets now reflect diminished cut expectations. The April 2027 meeting markets show traders pricing rates above 3.75% at 58¢, up 35¢, while January 2027 markets imply rates staying above 2.25% at 68¢, up from 50¢. Fed participants observed that overall inflation remained above the Committee's 2% goal, with some noting further progress had been absent in recent months. J.P. Morgan sees the Fed holding steady through 2026 with potential hikes in Q3 2027, as officials dial back enthusiasm for cuts given inflation running high. The coordinated moves across multiple timeframes signal a fundamental reassessment of the rate trajectory.