Traders on Polymarket are pricing a strong consensus for the federal funds rate to dip below 3% before 2027, with implied probabilities exceeding 70% for the 2-3% bin amid the Fed's ongoing easing cycle. This sentiment stems from the recent 75 basis point cuts since September, bringing the target range to 4.50-4.75%, fueled by inflation cooling to 2.4% PCE and softening labor markets with unemployment at 4.2%. CME FedWatch Tool shows near-certainty of a December 25bps trim and 100bps total cuts by mid-2025, though persistent services inflation or renewed job strength could cap declines. Key catalysts ahead include the December 18 FOMC meeting and January CPI release, where hotter-than-expected data might preserve higher-for-longer dynamics toward neutral rates around 2.5-3%.
Experimental AI-generated summary referencing Polymarket data · UpdatedWhat will Fed Rate hit before 2027?
What will Fed Rate hit before 2027?
$724,596 Vol.
↑ 5.5%
4%
↑ 5.25%
3%
↑ 5.0%
3%
↑ 4.75%
3%
↑ 4.5%
3%
↑ 4.25%
5%
↓ 3.25%
73%
↓ 3.0%
52%
↓ 2.75%
29%
↓ 2.5%
20%
↓ 2.25%
12%
↓ 2.0%
12%
↓ 1.75%
7%
↓ 1.5%
7%
↓ 1.25%
8%
↓ 1.0%
6%
↓ 0.75%
9%
↓ 0.5%
5%
↓ 0.25%
5%
↓ 0%
6%
$724,596 Vol.
↑ 5.5%
4%
↑ 5.25%
3%
↑ 5.0%
3%
↑ 4.75%
3%
↑ 4.5%
3%
↑ 4.25%
5%
↓ 3.25%
73%
↓ 3.0%
52%
↓ 2.75%
29%
↓ 2.5%
20%
↓ 2.25%
12%
↓ 2.0%
12%
↓ 1.75%
7%
↓ 1.5%
7%
↓ 1.25%
8%
↓ 1.0%
6%
↓ 0.75%
9%
↓ 0.5%
5%
↓ 0.25%
5%
↓ 0%
6%
This market will resolve to “Yes” if the lower or the upper bound of the target federal funds rate reaches the specified level at any point by December 31, 2026, 12:59 PM ET. Otherwise, this market will resolve to “No.”
Emergency rate cuts and hikes outside the regularly scheduled meetings will be considered.
The resolution source for this market is the official website of the Federal Reserve at:
https://www.federalreserve.gov/monetarypolicy/openmarket.htm.
This market may resolve as soon as the relevant data showing the reached level is published.
Market Opened: Nov 18, 2025, 3:37 PM ET
Resolver
0x65070BE91...Resolver
0x65070BE91...Traders on Polymarket are pricing a strong consensus for the federal funds rate to dip below 3% before 2027, with implied probabilities exceeding 70% for the 2-3% bin amid the Fed's ongoing easing cycle. This sentiment stems from the recent 75 basis point cuts since September, bringing the target range to 4.50-4.75%, fueled by inflation cooling to 2.4% PCE and softening labor markets with unemployment at 4.2%. CME FedWatch Tool shows near-certainty of a December 25bps trim and 100bps total cuts by mid-2025, though persistent services inflation or renewed job strength could cap declines. Key catalysts ahead include the December 18 FOMC meeting and January CPI release, where hotter-than-expected data might preserve higher-for-longer dynamics toward neutral rates around 2.5-3%.
Experimental AI-generated summary referencing Polymarket data · Updated



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