December Rate Cut Odds Soar to 80.9%, Signaling Potential Shift

Market sentiment has shifted dramatically, with the odds of a December rate cut by the U.S. Federal Reserve surging from 42.4% last week to an unprecedented 80.9%. This increase reflects growing optimism about inflation cooling and the Fed’s potential shift towards a more accommodative monetary policy. Economic indicators suggest softening price pressures and declining consumer demand, offering the Fed a greater leeway in supporting economic growth without triggering rampant inflation.