#DecemberRateCutForecast The December rate cut forecast is looking uncertain, with Fed Chair Jerome Powell pushing back on expectations for a December cut, saying it's "far from" guaranteed. The Fed has already cut rates to 3.75%-4.00% and halted quantitative tightening, citing liquidity risks and declining bank reserve levels.

Some key points to consider ¹ ²:
- *Fed's Caution*: Powell emphasized that further cuts in 2025 are not guaranteed, and the Fed needs to see additional improvements in inflation to continue cutting rates.
- *Market Expectations*: The CME FedWatch Tool shows a 70% probability of another cut in December, but Powell's comments have shaken expectations and lifted the dollar.
- *Economic Outlook*: The Fed's economic assessment is based on "available indicators," and the outlook is uncertain, with risks to both sides of its dual mandate.

Overall, the December rate cut forecast is uncertain, and the Fed is taking a cautious approach, prioritizing inflation control and economic stability.