Markets See 97.8% Probability of 25bps Fed Rate Cut
CME FedWatch indicates a 67.3% likelihood of a December 25 basis point Fed rate cut, with January projections reflecting market uncertainty over the extent of monetary easing.
Summary
Latest CME FedWatch data shows a 67.3% probability of the Federal Reserve cutting interest rates by 25 basis points in December, and a 32.7% chance of no change. For January, there is a 55.8% likelihood of a cumulative 25 basis point cut and a 22.3% chance of a cumulative 50 basis point reduction, reflecting uncertainty over the scale of policy easing.
Terms & Concepts
- 25bps Rate Cut: A reduction of 0.25 percentage points in the benchmark interest rate set by the Federal Reserve.
- Basis Point: A unit equal to one-hundredth of a percentage point, used in financial contexts to describe changes in interest rates or yields.