
Fed decision in Dec 2026?
PM $8.67M · K 3.04M contracts
12
60
Fed decision in Dec 2026?

PM $8.67M · K 3.04M contracts
12
60
Polymarket vs Kalshi
Snapshot from
As of Oct 29, 2026, 9:00 AM UTC, Hike 25bps is priced at 76.5% on Polymarket and 77.5% on Kalshi.
| Outcome (Yes price) | Polymarket | Kalshi | Gap |
|---|---|---|---|
| Hike 25bpsSame question, fine print differs | 76.5% | 77.5% | 1.0 pts |
| No changeSame question, fine print differs | 21.5% | 19.5% | 2.0 pts |
| Cut 25bpsSame question, fine print differs | 0.4% | 0.5% | 0.1 pts |
Yes prices for outcomes an automated review found to ask the same question on both platforms. They are not order quotes; check each platform's rules, fees and live prices before trading.
AI Analysis
Trader mode: Market mechanics, assumptions and risks
PM $8.67M · K 3.04M contracts
Reported volume · provider units
60
Saved contracts
6
Same-question pairs
Source snapshot: Oct 29, 2026, 9:00 AM UTC
About This Event
On Dec 9, 2026 If the Federal Reserve does a Hike of 25bps on December 09, 2026, then the market resolves to Yes. The outcomes are mutually exclusive: at most one can resolve to Yes. For example, a 50-basis-point hike resolves “Hike 25 bps” to Yes and “Hike 25 bps” to No. If the scheduled FOMC meeting is canceled and does not occur on its scheduled date, “Fed maintains rate” resolves to Yes and all other outcomes resolve to No.
This analysis is awaiting a background update, so its prices may be older than the odds above.
Current Market Outlook
Prediction markets currently give a 62% probability that the Federal Reserve will hold rates steady at its December 9, 2026 meeting. This means the market sees a rate pause as the most likely outcome, but with enough uncertainty to keep the probability well below 90%. The remaining 38% is split across potential rate cuts and hikes, with cuts being the primary alternative scenario.
The 62% figure reflects a market that expects the Fed to have completed its tightening cycle well before 2026. The December 2026 meeting sits over 18 months from now, giving the central bank ample time to assess inflation trends, labor market conditions, and economic growth before committing to a policy stance.
Key Factors Driving the Odds
Inflation trajectory is the dominant input. The Fed's 2% target remains the anchor. If core PCE inflation settles around 2.5% by late 2025 and shows clear downward momentum, holding rates becomes the consensus view. But if inflation reaccelerates or proves sticky above 3%, the probability of a hike would increase sharply.
The neutral rate debate matters. The Fed's June 2024 Summary of Economic Projections showed the median long-run neutral rate at 2.8%, up from 2.5% a year earlier. If the neutral rate continues rising, the current 5.25-5.50% fed funds rate might not be as restrictive as assumed. That would make holding rates in 2026 more defensible even with moderating inflation.
Political pressure is a wild card. A 2026 FOMC meeting falls in a midterm election year. The Fed has historically avoided major policy shifts close to elections, but the December date is after the November election. That removes some political constraints but also means the committee could face pressure from a new Congress or administration.
What Could Change These Odds
The biggest risk to the current 62% probability is a hard economic landing. If the U.S. enters a recession in late 2025 or early 2026, the market would repricing toward rate cuts. The probability of a hold could drop below 40% quickly.
Conversely, a second wave of inflation from fiscal stimulus, supply shocks, or wage growth could push the market toward expecting a hike. The 62% hold probability would look fragile if core PCE climbs back above 3% in 2025.
The Fed's September 2025 dot plot release will be a major catalyst. If the median projection shows rates staying flat through 2026, the hold probability could rise to 75% or higher. If dots show cuts, the probability would fall.
AI-generated analysis based on market data. Not financial advice.
Saved Jul 28, 2026 UTCThis saved content is awaiting a background update. It may contain outdated claims; use the dated market data and provider rules for the latest available information.
Overview
The Federal Reserve's Federal Open Market Committee (FOMC) sets the federal funds rate, the benchmark interest rate that influences borrowing costs across the U.S. economy. This prediction market focuses on the FOMC's decision at its scheduled meeting on December 9, 2026, specifically whether the Fed will hike rates by 25 basis points (bps), 50 bps, or maintain the current rate. The market is mutually exclusive, meaning only one outcome can occur. This is a forward-looking bet on the trajectory of monetary policy more than two years out, reflecting uncertainty about inflation, employment, and economic growth. The Fed has used rate hikes aggressively since 2022 to combat high inflation, but by late 2026, the economy could be in a different phase: a soft landing, a recession, or persistent inflation. The market allows traders to express views on where the economy will be and how the Fed will respond. As of mid-2025, the Fed has held rates steady at 5.25%-5.50% since July 2023, after a series of 11 rate hikes from near zero starting in March 2022. Inflation, as measured by the Personal Consumption Expenditures (PCE) price index, fell from a peak of 7.1% in June 2022 to around 2.6% in March 2025, still above the Fed's 2% target. The labor market has remained resilient, with unemployment at 3.9% in April 2025. The Fed's dot plot projections from March 2025 indicated two quarter-point rate cuts by end of 2025, but no hikes. However, if inflation reaccelerates due to tariffs, fiscal stimulus, or supply shocks, the Fed could reverse course and hike again. The December 2026 meeting is far enough out that many scenarios are possible. Interest in this market stems from the high stakes of Fed decisions. Rate changes affect mortgage rates, credit card rates, business borrowing, stock market valuations, and the dollar's exchange rate. A hike in late 2026 would signal that inflation remains stubborn or that the economy is overheating, likely causing bond yields to rise and equities to fall. Conversely, a hold or cut would suggest the Fed is easing policy to support growth. Traders, economists, and investors use these markets to hedge or speculate on monetary policy, and the probabilities implied by market prices can inform broader financial strategies. The market also reflects the difficulty of forecasting central bank actions years in advance, given the Fed's data-dependent approach.
Historical Context
The Federal Reserve's use of interest rate hikes to control inflation has a long history. The most recent aggressive hiking cycle began in March 2022, when the Fed raised rates from near zero to combat inflation that had reached 40-year highs. By July 2023, the federal funds rate had been raised 11 times to 5.25%-5.50%, the highest level since 2001. This cycle was the fastest tightening since the early 1980s, when Fed Chair Paul Volcker raised rates to 20% to break double-digit inflation. The 2022-2023 hikes were a response to post-pandemic supply chain disruptions, fiscal stimulus, and a tight labor market. Unlike the 1980s, inflation has fallen without a severe recession, a rare 'soft landing' scenario. However, the Fed has paused since July 2023, waiting to see if inflation continues to decline. Historically, the Fed has also cut rates during economic downturns, such as during the 2008 financial crisis and the 2020 pandemic. The current period of high rates is unusual because it follows a rapid tightening cycle, and the economy has remained strong. The December 2026 meeting is far enough out that the Fed could be in a completely different phase: if inflation is below 2%, the Fed might be cutting rates; if inflation is back above 3%, the Fed could be hiking again. The Fed's own projections from March 2025 showed the median expectation for the federal funds rate at the end of 2026 was 3.1%, implying several cuts. But these projections are revised quarterly and are often wrong. For example, in December 2021, the dot plot projected no rate hikes in 2022, but the Fed ended up hiking seven times. This history underscores the difficulty of forecasting Fed decisions years in advance.
Why It Matters
The Fed's December 2026 decision will have broad economic implications. If the Fed hikes rates, it would increase borrowing costs for households and businesses, potentially slowing economic growth. Higher mortgage rates could cool the housing market, while higher credit card and auto loan rates would squeeze consumer spending. Businesses might delay investment, leading to slower job creation. Conversely, if the Fed keeps rates steady or cuts, it would signal confidence that inflation is under control, potentially boosting stock prices and consumer sentiment. The decision will also affect the U.S. dollar's value, impacting international trade and emerging market economies that borrow in dollars. Beyond the immediate economic effects, the Fed's decision will influence political dynamics. In 2026, a midterm election year, the Fed's independence is a sensitive topic. President Trump, who appointed Powell, has publicly pressured the Fed to cut rates in the past. If the Fed hikes before the election, it could face political backlash. The decision will also test the Fed's credibility in meeting its 2% inflation target. If inflation is still above target and the Fed does not hike, it could lose credibility. If it hikes and causes a recession, it could be blamed for over-tightening. The stakes are high for the Fed's reputation and for the stability of financial markets.
AI-written background. References identify the evidence used; Wikipedia links under Learn More are additional reading. Prices and provider rules are dated snapshots. This is not financial advice.
Related prediction markets
Prices are catalog snapshots and may have changed. Check each market's rules and observation time.

December 2026 Fed Combo · Rate and Dissents
K 30.4K contracts
Size of Fed balance sheet at end of 2026
K 21.0K contracts
Fed median dot plot in December 2026
K 3.8K contracts
Fed funds rate after Dec 2026 meeting?
K 657.5K contracts
Bank of Canada Decision in December?
PM $80.0K · K 45.3K contractsWill the Bank of Canada make no change to the target for the overnight rate at the December interest rate announcement?
Kalshi: Will Bank of Canada maintain the current rate at their December 2026 meeting?
Same question, fine print differs
Will the Bank of Canada increase the target for the overnight rate by 25 bps at the December interest rate announcement?
Kalshi: Will Bank of Canada hike rates by 25bps at their December 2026 meeting?
Same question, fine print differs
Will the Bank of Canada decrease the target for the overnight rate by 25 bps at the December interest rate announcement?
Kalshi: Will Bank of Canada cut rates by 25bps at their December 2026 meeting?
Same question, fine print differs
Related or unreviewed contracts may settle differently. Their gap is not an equivalent-contract comparison.
Saved prices; check contract rules.

NFL Players Traded
K 167.1K contractsMarket Insights
Price gaps of 2 pp+
1
Same-question pairs
6
Largest saved gap: 2.5 percentage points.
Price differences do not establish arbitrage. Check each pair's review, current order prices, fees and settlement rules.

