Economists largely expect December Fed cut despite dissent

Thursday, December 04, 2025 at 12:00 UTC+01:00 (+0100), United States, Washington, D.C.

News category : Macroeconomic Events

A Reuters survey published Dec. 4 found that a strong majority of economists still expect the Federal Reserve to reduce interest rates in December, mirroring high probabilities priced into futures markets. The consensus stands in contrast to a rising number of public dissenting remarks from Fed officials who urged caution due to persistent inflation risks. The divergence between market expectations and visible policy splits adds to event risk ahead of the central bank's meeting, prompting traders to hedge and price scenario-dependent outcomes. Market strategists noted the environment magnifies the impact of incoming macro prints that could tilt the balance.

Overall market impact

Mild bullish market impact - strength score : 76/100

Detailed breakdown of market impact over instruments, sectors, and asset classes

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Impacted instruments :

US equities

Interest-rate futures

USD FX pairs

Investment-grade credit

Volatility instruments

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