Federal Reserve Interest Rate Predictions For December And January

According to Odaily, the CME's "FedWatch" tool indicates a 24.3% probability that the Federal Reserve will maintain its current interest rates through December. There is a 75.7% likelihood of a cumulative 25 basis point rate cut by the end of the year. These probabilities were previously 37.9% and 62.1%, respectively, before the release of the Consumer Price Index (CPI). Looking ahead to January, the probability of the Federal Reserve keeping interest rates unchanged is 16.5%. Meanwhile, there is a 59.2% chance of a cumulative 25 basis point rate cut and a 24.3% probability of a 50 basis point reduction. Prior to the CPI announcement, these probabilities stood at 26.5%, 54.9%, and 18.6%, respectively. These figures reflect market expectations and potential monetary policy adjustments in response to economic indicators.