Fed rate markets are painting a conflicted picture for April 2027, with massive swings across the rate spectrum. The 'above 3.75%' bet plunged 24 cents to 21¢, while 'above 2.75%' surged 20 cents to 70¢ - suggesting traders see rates settling in the middle range rather than extremes. Economic forecasts show the funds rate settling around 3% this year and staying there through 2027, but tariff impacts are expected to boost inflation in 2026 before declining to the Fed's 2% target in 2027. The market appears to be pricing in a scenario where neither aggressive cuts nor dramatic hikes materialize, reflecting uncertainty about whether the Fed will cut more than once in 2026 as inflation and growth data evolve.