Traders Increase Bets On December Fed Rate Cut

According to PANews, traders have significantly increased their bets on a potential interest rate cut by the Federal Reserve in December. The likelihood of a rate cut is now priced at approximately 75%, up from 60% before the release of the latest U.S. inflation data. The U.S. Consumer Price Index (CPI) for October, not seasonally adjusted, showed an annual increase of 2.6%. This figure aligns with market expectations and marks a three-month high, halting a six-month streak of declining inflation rates. The data suggests that inflationary pressures are persisting, which may influence the Federal Reserve's monetary policy decisions in the coming months. The anticipation of a rate cut reflects traders' expectations that the Federal Reserve may take action to support economic growth amid ongoing inflation concerns. The decision will likely depend on further economic indicators and assessments of inflation trends. As the December meeting approaches, market participants will closely monitor any signals from the Federal Reserve regarding its policy direction.