The Federal Reserve's September 16, 2026, decision to raise the target range for the federal funds rate by 25 basis points to 3.75%-4.00%—its first hike since 2023—reflects persistent inflation pressures, with the latest PCE readings at 3.7% headline and 3.4% core. Updated projections from 16 of 18 officials point to at least one additional quarter-point increase by year-end, potentially reaching 4.00%-4.25%, with rates expected to hold near those levels through 2027 before modest easing later. Market-implied odds via futures now favor further tightening at the October 27-28 or December 8-9 meetings, driven by resilient growth, solid labor market data, and upside risks to prices from geopolitical factors. Upcoming inflation releases and FOMC communications will shape near-term expectations for any shift toward cuts.
Riepilogo sperimentale generato dall'AI con riferimento ai dati di Polymarket. Questo non è un consiglio di trading e non ha alcun ruolo nella risoluzione di questo mercato. · AggiornatoMarkets react to Fed rate hike with sharp decline in rate cut probabilities
December 2026 Meeting dips to 3%4%
Following the September 16 rate hike, market prices for rate cuts at the December 2026 and subsequent meetings dropped sharply, reflecting diminished expectations for easing in the near term. This was evident in the December 2026 meeting contract price falling from 7% to 3% and similar declines in other meetings.
Strong economic data and Fed hike reduce odds of January 2027 rate cut
January 2027 Meeting plunges to 11%39%
The combination of the Fed's September hike and robust economic indicators led to a steep decline in market pricing for a rate cut at the January 2027 meeting, with contract prices falling from 50% to 11%. This reflects a market consensus that cuts in early 2027 are unlikely.




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