Persistent inflation pressures, particularly energy-driven components, alongside resilient U.S. economic growth have positioned a 25 basis point rate increase as the leading outcome for the December FOMC meeting, with market-implied odds at 70.5%. The Federal Reserve held its federal funds target range steady at 3.75%-4.00% in late October after the September hike, though two officials dissented in favor of immediate tightening. Recent data releases showing broad-based price increases and solid payroll trends have reinforced trader expectations that additional policy adjustment will be needed to return inflation to the 2% target. The December 8-9 meeting remains the final 2026 gathering, with fresh CPI and PCE readings likely to shape the final consensus.