US Fed Meeting Live: Rate Cut On Cards But Hawkish Tilt May Derail Year-End Santa Rally

The markets see over 80% probability of the US Fed cutting interest rate amid cooling employment and mixed inflation data. This decision could ignite a year-end Santa Rally—a seasonal uptick in stocks during late December and early January, historically positive 79% of the time with average S&P 500 gains of 1.3%—by signaling dovish policy and boosting risk assets, as per reports.

Markets will also scrutinize Chair Jerome Powell’s post-meeting remarks for clues on the 2026 rates path.The fireworks will come from the vote split, the dot plot, updated economic forecasts, and of course, Fed Chair Jerome Powell’s press conference.