The next FOMC rate meeting will take place next week on December 11, 2019, and looks to be an event that should not spur too much attention in the markets as the Federal Reserve has made it clear that they will not budge on rates for months.
CME Fed Watch Tool
According to the CME Fed Watch tool, interest rates traders are pricing in that rates will remain unchanged at the current interval of 150-175 with a 98.8% probability. It is first in June 2020 that we start to see the market price in a different scenario. At the June 10, 2020 rate meeting, the markets are giving it a 45.6% probability that the US interest rates would be lowered by 25 basis points.
There are, however, some items that might change the outlook for the next week’s Federal Reserve rate meeting. First, it will be interesting to find out what the central bank thinks about the latest weak readings in the US ISM indicators. At the rate meeting they will also be in a position to have a view on the most recent US job market creation.