CME FedWatch: 71.8% Probability of No Fed Rate Change in October

According to CME FedWatch, markets assign a 71.8% probability to the Federal Reserve keeping interest rates unchanged at its October meeting, while the probability of a cumulative 25-basis-point rate hike stands at 28.2%.

By December, the probability of rates remaining unchanged falls to 7.2%.

Markets assign a 67.4% probability to a cumulative 25-basis-point rate hike by December.

The probability of a cumulative 50-basis-point rate hike by December stands at 25.4%.

Market takeaway: The projections indicate that markets expect tighter monetary policy by December, although the figures reflect market-implied probabilities rather than confirmed Fed decisions.

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