Next Fed Meeting: December Rate Cut Expectations and Market Implications
The Federal Reserve's December 9-10 meeting looms large as markets anticipate a potential third consecutive rate cut. With the fed funds rate currently at 3.75%-4%, policymakers face mounting pressure to act as employment indicators weaken. CME Group's FedWatch tool shows a 63% probability of easing, reflecting growing economic pessimism.
Chair Jerome Powell's recent cautionary remarks inject uncertainty into the outlook. The Fed's dual mandate challenges—price stability and maximum employment—appear increasingly difficult to balance amid government data blackouts. Market participants should prepare for volatility across risk assets, including cryptocurrencies, as the central bank's decision could recalibrate liquidity expectations.