Fed Officials Signal Support for December Rate Cut as Market Prices 54% Probability

Several Federal Reserve officials signaled openness to further rate cuts on Nov. 21, driving U.S. short-term interest rate futures to price in a 54% probability of a December cut, BlockBeats reports. Fed Governor Kugler said she would support a 25 basis point reduction if her vote proved decisive, noting CPI data will be released after the next FOMC meeting. New York Fed President Williams indicated the Fed may still lower rates in the near term as current policy remains somewhat restrictive, projecting inflation will reach the 2% target by 2027. Fed Vice Chair noted AI-related stock gains reflect actual earnings rather than speculative bubbles, while Fed's Collins anticipated further rate reductions over time.