Traders bet big on Fed rate cut as December odds soar above 80% on prediction markets

Group 1 - Prediction markets indicate a strong likelihood (over 80%) of a 25-basis-point interest rate cut by the Federal Reserve in December, with minimal chances of rates being held steady or a larger move occurring [1][4] - The total trading volume on Polymarket for the Fed decision market is approximately $171 million, while Kalshi has seen over $15.8 million in bets placed [1][4] - The Federal Reserve's next policy meeting is scheduled for December 9-10, where decisions regarding interest rates will be made amid economic pressures such as rising housing costs and inflation [7] Group 2 - President Trump has criticized Federal Reserve Chairman Jerome Powell for not implementing more aggressive rate cuts, with Powell's term ending in May 2026 [10] - Treasury Secretary Scott Bessent is conducting interviews for potential candidates to replace Powell, with an announcement expected by Christmas [11]