Fed December Rate Cut Probability Drops to 30% Amid Inflation Concerns

Market expectations for a Federal Reserve interest rate cut in December have significantly decreased, with current probability assessments falling to just 30%. This sharp decline reflects changing investor sentiment regarding the Fed's monetary policy trajectory as inflation data continues to exceed projections. Financial analysts note the reduced likelihood of easing suggests the central bank may maintain higher rates for longer to combat persistent price pressures. The shift in rate cut expectations is influencing various asset classes, including stocks, bonds, and cryptocurrencies, as traders adjust their portfolios for a potentially more hawkish Fed stance through year-end.