December Rate Hike Probabilities Plummet to 25% as Labor Data Signals Softer Inflation and Fed Officials Signal Openness to Near-Term Easing

Market expectations for a December interest rate hike are plummeting, as labor data reveals softening inflation trends and key Federal Reserve officials signal their openness to near-term easing. Recent reports show that the odds of a rate cut have significantly decreased from 85% to just 25%. This rapid shift is largely driven by weakening labor indicators and remarks from Fed officials indicating potential for further easing. Bitcoin’s price has reacted to this news, climbing over $89,000. Markets now anticipate the Federal Reserve will prioritize near-term policy adjustments over inflation concerns.