Fed Rate Cut Odds For December Nearly Double After NY Fed’s Williams Signals ‘Room For Further Adjustment’

The probability of a Fed interest rate cut in December shot up on Friday after Federal Reserve Bank of New York President John Williams stated that there is room for further adjustment.

According to data from the CME FedWatch tool, there is now a 70.9% probability of a 25 basis point rate cut in December, up from 39.1% a day ago.

Earlier on Friday, Williams stated that while it is necessary to bring inflation back to the Federal Reserve’s long-term goal of 2%, it is equally important to do so without creating undue risks to the goal of maximum employment.

“Therefore, I still see room for a further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral, thereby maintaining the balance between the achievement of our two goals,” he said.

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Also See: NY Fed's Williams Says Trump Tariffs May Have Added Up To 75 Bps To Inflation, But Sees Room For A Further Cut

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