Nov 18, 2025 05:53 PM (GMT+8) · EqualOcean
Following the US government shutdown, hawkish remarks from several Federal Reserve officials significantly cooled market expectations for further rate cuts, despite the Fed having already cut rates twice (last time to 3.75%-4.00% in late October). Inflation remains stubbornly above the Fed's 2% target. Officials, including Dallas Fed President Logan, oppose a December cut, arguing that lowering rates could jeopardize inflation control efforts. According to the CME FedWatch Tool, the market-predicted probability of a 25 basis point rate cut in December has fallen below 50% (to 44.4%), reflecting the increasingly hawkish atmosphere within the Federal Reserve.

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