70.1% Probability of Fed Rate Cut in December

Recent CME Group data reveals that there’s a strong possibility the Federal Reserve will lower interest rates by 25 basis points in December. The probability, as indicated by the FedWatch tool, stands at 70.1%. The likelihood of maintaining current rates is only 29.9%. Looking ahead to January, the outlook presents somewhat different possibilities: a cumulative 25 basis point cut has a 55.8% chance, with no change at 19.3%, and a 24.8% chance of a 50 basis point reduction.