Fed December Rate Cut Odds Jump to 71% as Williams Signals Policy Flexibility

Market expectations for a Federal Reserve rate cut in December have surged to 71%, up from 30-40% earlier this week, CME FedWatch Tool data show. New York Fed President John Williams said monetary policy operates at a "modestly restrictive" level with room to move toward neutral, while minimizing concerns about tariff-driven inflation. Fed officials remain divided on the appropriate policy path, with some favoring no change and others open to further reductions.