Will the Fed continue to cut rates in December? The market is in a heated debate.

Bank of America is still pretty optimistic, thinking there’s a high chance of another 25 basis point cut in December, and two more rounds of cuts in 2026. But if you look at the data, the sentiment has shifted—ahead of November, 95% of the market was betting on a December rate cut. Now? That’s been slashed to 44%.

What’s the issue? Several Fed officials have been making some pretty hawkish statements lately, repeatedly questioning if inflation can really come down to 2%. With this kind of attitude, traders immediately got cold feet.