The Federal Reserve cut interest rates at its last two meetings–and the odds are shifting in favor of it making it a hat-trick next month.
Traders think there’s a 67% chance the central bank slashes borrowing costs by 25 basis points and just a 33% chance it stands pat on Dec. 18, according to the CME FedWatch tool.
The implied likelihood of a cut has risen after the Fed published minutes from its last meeting, which ended Nov. 7, on Tuesday. The minutes showed policymakers are confident inflation will fall in line with their 2% target, and noting that further rate cuts could help support the U.S. jobs market.