Economists Predict Federal Reserve’s December Rate Decision: Divided Opinions Emerge

Analysts are divided on the Federal Reserve’s potential interest rate changes in December, according to recent reports. Odaily highlights this uncertainty, with varying predictions regarding a possible 25 basis point rate cut. For instance, Polymarket suggests a higher likelihood of a 25 basis point reduction at 73% while maintaining the current rate is predicted at 25%. The CME FedWatch tool, on the other hand, offers a different perspective. Its analysis indicates a greater probability for a rate cut with a 66.9% chance compared to a 33.1% likelihood of no change. This tool draws its predictions from professional interest rate traders’ insights, while Polymarket reflects the collective actions of individuals placing real bets on the platform.