Search
 

The Fed Will Likely Cut Rates on Wednesday

But is that the wisest move?

By Erik Sherman | December 16, 2024 at 06:51 AM

Last Saturday night, if you wondered whether the Federal Reserve would cut interest rates and you checked CME FedWatch, which follows the futures market for predictive value, you would have seen a 96% chance of a 25-basis-point cut. That was 200 basis points lower than a similar check a few days earlier.

What might make this seem odd is that the Consumer Price Index report for November showed an increase to 2.7%. October also showed rising inflation. Cutting rates would seem the opposite of what the Fed might have been expected to do, keeping things steady.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.