The probability of the Fed cutting interest rates in December rises to 76.2%: FedWatch

According to predictions from FedWatch, the probability of the Fed reducing interest rates in December has increased to 76.2%. This reflects a shift in market sentiment regarding the likelihood that the Fed will adjust its interest rate policy based on the current economic situation.

At the recent November meeting, the Fed decided to cut interest rates by another 0.25% and emphasized that the risks of achieving inflation and employment targets are currently relatively balanced. However, Chairman Jerome Powell stated that there are no signals indicating a need to rapidly reduce interest rates further. Analysts are closely monitoring the impacts of interest rate adjustments, especially in the context of some economic sectors facing more difficulties than others.

Many economists note that, despite pressure from the market, the Fed may not rush to cut interest rates further to avoid the risk of inflation potentially rising again as the economy continues to show signs of recovery.