The CME FedWatch Tool indicates a 54.2% probability that the Federal Reserve will raise interest rates by 25 basis points at its October meeting, compared to a 45.8% chance of holding rates steady at 3.75%-4.00%. Market expectations have shifted slightly in favor of tightening as the next policy decision approaches.
Looking ahead to December, the probability of maintaining current rates drops to just 10.8%. Markets currently price in a 47.8% likelihood of a cumulative 25 basis point increase and a 41.4% chance of a cumulative 50 basis point hike by year-end, signaling widespread anticipation of further monetary tightening over the coming months.
CME FedWatch: 54.2% Probability of Rate Hike at October Meeting
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