Small font size A Larger text size A Largest text size A

Traders' bets shift towards a Fed rate cut in December

BY Reuters | ECONOMIC | 11/21/25 08:45 AM EST

Nov 21 (Reuters) - Traders on Friday moved to boost bets the Federal Reserve will cut the U.S. policy rate for a third straight time when policymakers meet on December 9-10, as New York Fed President John Williams said the central bank could cut rates in the "near term."

Short-term interest-rate futures now reflect a 57% chance of a December Fed rate cut, up from well below 50% earlier. (Reporting by Howard Schneider, Ann Saphir)

More Fixed Income News

Fed Policy Easing Expectations Help Push Gains in US Equity Indexes This Week BY MT Newswires |ECONOMIC 04:49 PM EST
Nasdaq Extends Advance, Wall Street Logs Weekly Gain Amid Rate Cut Optimism BY MT Newswires |ECONOMIC 04:47 PM EST
Where Labor Data Goes, FED Should Shortly Follow BY Benzinga |ECONOMIC 04:19 PM EST
Munis little changed ahead of $10B new-issue calendar BY SourceMedia Bond Buyer |MUNICIPAL 04:02 PM EST

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article