US Federal Reserve Meeting: Investors and analysts will closely monitor the US Federal Reserve's Federal Open Market Committee (FOMC) outcomes, which could potentially influence market trends in 2026. The two-day meeting is scheduled on December 9 and December 10.
At its 2025 meeting, the FOMC is expected to consider a rate cut, currently ranging between 3.75% and 4%. The Fed has previously eased rates by 0.25% at two successive meetings to prevent a softening job market from worsening into a sharp unemployment spike.
According to the CME Group's FedWatch tool, which assesses the probability of rate cuts, there is an 89.4% possibility of a 25-basis-point rate cut at the upcoming meeting, CBS News reported. A 0.25% cut would bring the federal funds rate down to around 3.5% to 3.75%.
The probability of a rate cut has risen in recent weeks, driven by signs of weakening in the job market alongside surveys showing the public's gloomy outlook on employment, reported Investopedia.
However, the Investopedia report adds that a rate cut is far from guaranteed. Following the October FOMC meeting, Fed Chair Jerome Powell urged caution, underscoring that the panel remains split between those favouring rate cuts to safeguard jobs and others advocating keeping rates elevated longer to rein in inflation.
Fed policymakers remain sharply divided, with one faction calling for sizeable interest rate cuts and another supporting keeping rates unchanged.
Ryan Sweet, chief US economist at Oxford Economics, told Morningstar, “In the end, it's a much closer call than what market pricing would suggest. The committee is clearly divided.”
The government shutdown that ended in November has complicated the Fed's decision-making by halting key statistical agencies, which delayed crucial inflation and employment data until after the FOMC meeting.
This absence of timely information leaves Fed officials with limited insight into whether inflation or the labour market demands more urgent attention.
When And Where To Watch Fed FOMC Meeting?
The FOMC meeting is scheduled for Dec 9-10. The policy statement will be announced at 2 p.m. ET on December 10 (12:30 a.m. IST on December 11) at a press conference by US Fed Chair Jerome Powell.
The press conference, which follows the meeting, will be streamed live on the Federal Reserve's social media platforms, such as X and YouTube.
NDTV Profit will also stream the FOMC press conference on its YouTube channel and social media platforms.
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