Fed Rate Cut Odds for December 2025 Exceed 80%, Traders Estimate
Market expectations for a 25bps rate cut in December have surged following mixed job data and NY Fed President Williams' comments on easing amid labor market weakness.
Summary
The probability of a 25 basis point Federal Reserve rate cut in December 2025 has risen to 80%, up from 30% just days ago, according to market expectations. The shift follows mixed September jobs data and comments from NY Fed President Williams signaling potential near-term easing due to weak labor market conditions.
Terms & Concepts
- Federal Reserve: The central bank of the United States, responsible for monetary policy, including setting interest rates.
- CME FedWatch: A tool provided by the Chicago Mercantile Exchange that tracks market expectations for Federal Reserve interest rate decisions using futures pricing data.