Dovish Fed comments lift odds of December rate cut
Monday, November 24, 2025 at 14:30 UTC+01:00 (+0100), United States, Washington
News category : Macroeconomic Events
On November 24, 2025, a string of public remarks from senior Federal Reserve officials signalled a growing willingness to reduce interest rates in the near term, materially shifting market expectations. New York Fed President John Williams said policy could be eased "in the near term" without jeopardising the Fed's inflation goal, and Fed Governor Christopher Waller added that recent labour-market weakness supported a quarter-point cut at the December meeting. Traders responded quickly: equity futures climbed, benchmark Treasury yields fell and implied probabilities for a December cut surged. Market participants cited the comments as the primary catalyst for repositioning across asset classes — leveraged funds reduced short-dollar positions, fixed income traders increased duration exposure, and gold attracted safe-haven inflows. The remarks also altered pricing in interest-rate swaps and options markets, prompting large moves in hedging flows and volatility. The Fed comments were covered widely across major financial outlets and amplified by market data providers which showed a sharp rise in Fed-cut probabilities on the CME FedWatch tool.
Overall market impact
Strong bullish market impact - strength score : 85/100
Detailed breakdown of market impact over instruments, sectors, and asset classes
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Impacted instruments :
U.S. equities (S&P 500, Nasdaq)
U.S. Treasury bonds
USD
Gold
Interest rate derivatives
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