Will the Federal Reserve cut interest rates in December?

In the past few weeks, market expectations for a Federal Reserve rate cut have decreased. According to data from the CME FedWatch tool, the probability of a cut was 24% a month ago. Currently, due to inflation being relatively under control, this has risen to 56%.

However, some experts predict: Roach expects the Federal Reserve to skip a rate cut in December or January of next year, followed by a maximum of four cuts within 2025.

Analysts at Bank of America expect a rate cut in December, but they add, "Given the resilience of economic activity and stubborn inflation, the magnitude of the cut seems to lean towards being more moderate."

Notably, Powell's remarks at the time leaned towards considering delaying a rate cut.

If there is no rate cut in December, it will be the last opportunity to hoard currency, and by spring, it will basically double 😹!