US Fed rate cut predictions: Big interest rate cut expected in Federal Reserve meeting?

US Federal Reserve meeting for the month of December is scheduled on 17th and 18th and all eyes are on whether there will be any interest rate cut or not. If there is any rate cut then how much. Most of the economic experts have predicted a possible interest rate cut from the US Fed in December.

Major US data due this week includes US job openings, the ADP employment report and the payrolls report. Few Fed officials are due to speak this week, including Fed Chair Jerome Powell on Wednesday, Reuters reported.

According to the CME Group's FedWatch Tool, markets currently see a 65.4 per cent chance of a 25-basis-points rate cut in December, as per Reuters report.


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The ongoing slowdown in U.S. economic activity is expected to prompt further Fed rate cuts in December, boosting investment demand and driving gold to $2,900/oz by mid-2025, said UBS analyst Giovanni Staunovo, Reuters reported.

Major brokerages maintain their expectation of a 25 basis-point Fed rate cut in December, following PCE price index data aligning with market forecasts on Wednesday, according to Reuters.

Key U.S. economic events this week include job openings data, ADP employment report and non-farm payrolls. Speeches from Fed officials, including Chair Jerome Powell, will also draw attention.

FAQs

Q1. What is full form of Fed Reserve?
A1. Fed Reserve stands for US Federal Reserve.

Q2. When is US job openings data expected?
A2. Key U.S. economic events this week include job openings data, ADP employment report and non-farm payrolls.