Inflation and Interest Rates: Fed Leans Towards a Cut

The Fed is leaning towards a 25 basis point interest rate cut in December, supported by officials and weak economic data.

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Inflation and Interest Rates: Fed Leans Towards a Cut
Inflation and Interest Rates: Fed Leans Towards a Cut

Sources told Reuters that multiple statements from Federal Reserve officials have bolstered expectations for a 25 basis point cut at the upcoming December meeting. John Williams, President of the New York Fed, expressed support for a near-term reduction, while Mary Daly, President of the San Francisco Fed, pointed to risks facing the labor market that warrant intervention. Weak economic data, including a slowdown in retail sales in September and disappointing labor market figures, support the Fed's case for easing monetary policy. Markets are currently pricing in an 83% chance of a rate cut in December, a significant increase from 40% just a week ago, reflecting a clear shift in monetary policy expectations.

Sources & References
Reuters
Editorial Note
Edited & Reviewed by the Ecopulse Editorial Board 1/24/2026, 22:35:35 UTC
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