The U.S. Federal Reserve is increasingly expected to reduce interest rates in December, with the CME Group’s “FedWatch” tool indicating an 87% probability of a 25 basis point cut. The odds of maintaining the current rate stand at 13%. Additionally, there is a 64.1% chance of a total 25 basis point reduction by January, with a 9% chance of rates remaining unchanged. The likelihood of a cumulative 50 basis point cut by January is estimated at 27%. The Fed’s interest rate policy significantly impacts the U.S. economy, influencing inflation, employment, and financial markets. While the Fed had previously raised rates to control inflation and stabilize the economy, concerns about a potential economic slowdown and complex global financial conditions have increased the possibility of easing rates. Lower interest rates reduce borrowing costs, encouraging investment and spending by businesses and consumers, though careful measures remain necessary to manage inflation. Financial experts note that upcoming Fed decisions are likely to have a notable effect on global markets and investment trends. This development suggests the Federal Reserve may opt to ease rates to support economic growth, but further adjustments remain possible depending on evolving domestic and international financial conditions.
Source: binance
