Continuing the previous argument, Fed officials spoke around the “support for prudent, gradual, slow rate cuts” to start. The Fed seems to create such a tone: rate cuts will continue, but with the first cut in the formation of expectations are different, and next year the market will bear a higher CPI, the neutral interest rate is inevitable to rise. cme fed watch November rate cut 25 a few points probability of 96.3%.

It's interesting to see how the Fed is shaping the expectations for rate cuts and the market's response to it. The high probability of a November rate cut shows the confidence in the Fed's approach. It will be crucial to monitor how the market adjusts to these changes in the upcoming year.