US Federal Reserve December Rate Cut Odds Fall to 50%
CME FedWatch now shows a 67.3% chance of a December rate cut, with January projections indicating possible cumulative reductions of up to 50 basis points.
Summary
CME FedWatch data indicates a 67.3% probability that the US Federal Reserve will cut rates by 25 basis points in December, and a 32.7% chance of no change. For January 2025, markets project a 55.8% probability of a cumulative 25 basis point reduction and a 22.3% chance of a cumulative 50 basis point cut. These probabilities reflect futures market sentiment toward potential monetary easing.
Terms & Concepts
- US Federal Reserve: The central banking system of the United States, responsible for setting monetary policy such as interest rates.
- Basis Point: A unit equal to 1/100th of a percentage point, commonly used to express changes in interest rates.