Fed Funds futures now indicate approximately a 33% probability of an October Federal Reserve rate hike, a sharp reversal from just two days ago when markets priced in over 70% odds. The significant shift reflects updated methodology and a weaker-than-expected core PCE inflation reading that has altered trader expectations for near-term monetary policy tightening. The rapid repricing highlights the market's sensitivity to incoming macroeconomic data as investors reassess the likelihood of further Fed action before year-end. This decline in hike probability suggests growing confidence that inflation pressures may be easing faster than previously anticipated.