Persistent inflation well above the Fed’s 2% target, reinforced by September CPI data showing 3.7% year-over-year growth and core readings at 2.6%, underpins the 96.2% market-implied probability of zero federal funds rate cuts in 2026. Following the September 25-basis-point hike to the 3.75%-4.00% range, policymakers have signaled a tightening bias amid resilient economic growth and labor market conditions, with consensus expectations for a December increase rather than easing. Trader positioning reflects this data-driven path, where recent releases have outweighed earlier 2025 cuts. Upcoming October 28-29 FOMC minutes, November employment figures, and December PCE inflation will test whether any downside surprises in growth or prices could reopen room for cuts before year-end.
Experimental AI-generated summary referencing Polymarket data. This is not trading advice and plays no role in how this market resolves. · UpdatedView resolved

Beware of external links.
Beware of external links.
Frequently Asked Questions