US interest rate futures indicate an increased probability of a Fed rate cut in January | PANews

PANews, December 18 — Federal funds rate futures reflect a slight increase in the probability that the Federal Reserve will cut rates at its policy meeting in January next year, after data showed that the U.S. Consumer Price Index (CPI) year-on-year increase in November was lower than expected. Traders now see a 28.8% chance of a 25 basis point rate cut in January, up from 26.6% before the inflation data was released. According to LSEG data, for 2026, traders are betting on a total Fed easing of about 64 basis points, compared to 63 basis points before the inflation data was released.