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Markets Put Near-Certain Odds on Fed’s Quarter-Point Cut at October Meeting

With December easing largely priced, traders focus on Powell’s post-meeting tone.

Overview

  • CME FedWatch shows a 99.9% probability of a 25-basis-point reduction following the Oct. 28–29 FOMC meeting.
  • Polymarket prices the same move at about 98% with near-zero odds on a hold or larger shift, and wagers exceed $208 million despite U.S. access restrictions.
  • Kalshi places roughly 98% odds on a quarter-point move and points to a two-cut path concentrated in October and December.
  • Polymarket assigns about 85% odds to an additional rate cut in December, aligning with broader market expectations.
  • A government shutdown has disrupted key data releases, heightening attention on Chair Jerome Powell’s statement, with some economists expecting intentionally cautious guidance.