Fed Cut Expectations Slide as Missing Data Clouds December Decision
Traders have sharply reduced their expectations for a Federal Reserve rate cut, with the odds of a 25-basis-point reduction slipping to 30%, according to CME’s FedWatch tool. That’s down from 50% just a day and a week ago, and a dramatic reversal from the 98% probability priced in a month earlier.
The shift comes as officials confront an unprecedented data gap. The Labor Department confirmed Wednesday that October’s employment report will not be released due to delays stemming from the record-long government shutdown, leaving policymakers without one of their most important indicators ahead of the December meeting.
Minutes from the Fed’s October gathering highlighted growing internal divisions over whether to hold rates steady or begin easing, adding to market uncertainty.
Bitcoin was last trading around $91,700, up 0.8% over the past 24 hours.
