CME FedWatch shows the market is expecting the Federal Reserve to cut rates by 25 basis points this month, which would be the third cut this year.
CME FedWatch, a tool used to measure expectations for a Federal Reserve rate change, has tipped the likelihood of an interest rate cut in December to 74.5%, up from earlier estimates.
On Monday, Dec. 2, the market tracking tool jumped 8.5 percentage points from its 66% probability on Nov. 29, for the expectation that the Fed would announce a 0.25% rate cut to a target of 4.25% to 4.5% when it meets on Dec. 17 and 18.
Currently, the US central bank has rates set at a target of 4.5% to 4.75% after dropping the rate by 0.75% across two cuts this year, bringing it down from an over 20-year high.
