A December rate cut once viewed as nearly certain now appears unlikely after new federal data showed stronger-than-expected U.S. job growth. Employers added 119,000 jobs in September, more than double forecasts, while unemployment edged up to 4.4%, the highest since 2021.
Economists say the solid hiring signals enough economic resilience for the Federal Reserve to pause its rate-cut cycle.
FactSet’s survey now puts the odds of a December cut at just 22%, down from 97% in mid-October. CME FedWatch gives slightly higher odds at 41%.
Probability of a December rate cut now at 31.8% per @CMEGroup FedWatch Tool, down from 98.8% a month ago pic.twitter.com/bWsmpE3gsb
— Liz Ann Sonders (@LizAnnSonders) November 20, 2025
Analysts say the Fed is reluctant to ease further while inflation remains at 3% and policymakers continue to warn against premature moves.
The central bank has already cut rates twice this fall but may wait until early 2026 before resuming reductions.
Without additional cuts, borrowing costs for homes and cars are likely to stay elevated, reinforcing Americans’ concerns about the cost of living.
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