{"id":235757,"date":"2025-12-09T12:51:12","date_gmt":"2025-12-09T17:51:12","guid":{"rendered":"https:\/\/ibkrcampus.com\/campus\/?p=235757"},"modified":"2025-12-09T15:53:09","modified_gmt":"2025-12-09T20:53:09","slug":"fed-to-cut-tomorrow-boc-to-pause","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/forecast-trader\/fed-to-cut-tomorrow-boc-to-pause\/","title":{"rendered":"Fed to Cut Tomorrow, BoC to Pause: Dec. 9, 2025"},"content":{"rendered":"\n<p>Yesterday\u2019s ForecastEx trading included a few block trades characterized by 10k contracts or more in a single transaction. Total volumes of 3.33 million on Dec. 8 were supported by an afternoon featuring single trades of 20k and 10k at 4:55 PM ET tied to whether Josh Shapiro will win the <a href=\"https:\/\/forecasttrader.interactivebrokers.com\/eventtrader\/?loginType=1&amp;forwardTo=100&amp;clt=0&amp;ip2loc=OFF&amp;locale=en_US#\/market-details?id=745923962%7C20280901%7C2%7C&amp;detail=contract_details\" target=\"_blank\" rel=\"noreferrer noopener\">Democratic Nomination<\/a> for US President in 2028. Meanwhile, at 4:45 PM ET and at 4:35 PM ET, we saw two single transactions of 15k and 10k connected to whether the Democratic Party will win a House of Representatives <a href=\"https:\/\/forecasttrader.interactivebrokers.com\/eventtrader\/?loginType=1&amp;forwardTo=100&amp;clt=0&amp;ip2loc=OFF&amp;locale=en_US#\/market-details?id=733131966%7C20270104%7C1%7C&amp;detail=contract_details\" target=\"_blank\" rel=\"noreferrer noopener\">majority<\/a> in the 2026 midterms and if the Fed will cut by <a href=\"https:\/\/forecasttrader.interactivebrokers.com\/eventtrader\/?loginType=1&amp;forwardTo=100&amp;clt=0&amp;ip2loc=OFF&amp;locale=en_US#\/market-details?id=791099755%7C20251210%7C4%7CDecember%202025\" target=\"_blank\" rel=\"noreferrer noopener\">25 basis<\/a> points tomorrow.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"84\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture1-4-1100x84.jpg\" alt=\"IBKR ForecastTrader Contract asking if Josh Shapiro will win the Democratic nomination for US president in 2028\" class=\"wp-image-235759 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture1-4-1100x84.jpg 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture1-4-700x53.jpg 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture1-4-300x23.jpg 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture1-4-768x58.jpg 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture1-4.jpg 1392w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/84;\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"84\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture2-3-1100x84.jpg\" alt=\"IBKR ForecastTrader Contract asking if Democratic Party will win US House of Representative majority in 2026\" class=\"wp-image-235760 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture2-3-1100x84.jpg 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture2-3-700x54.jpg 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture2-3-300x23.jpg 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture2-3-768x59.jpg 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture2-3.jpg 1395w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/84;\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"475\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture3-2-1100x475.jpg\" alt=\"IBKR ForecastTrader Contract asking if Fed will lower its key rate 25 basis points in December.\" class=\"wp-image-235761 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture3-2-1100x475.jpg 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture3-2-700x302.jpg 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture3-2-300x129.jpg 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture3-2-768x331.jpg 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture3-2.jpg 1393w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/475;\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-bank-of-canada-pausing-though\"><strong>Bank of Canada Pausing Though<\/strong><\/h3>\n\n\n\n<p>Despite the US Fed likely to reduce its interest rate tomorrow with a 93% degree of confidence, Canada is almost certainly going to pause, as its central bankers have signaled an extended halt in light of strengthening economic prospects and 2.2% inflation. Odds of a reduction in the US jumped from 26% in mid-November as a few voting members have voiced a need to support the labor market. But probabilities in Canada have remained north of <a href=\"https:\/\/forecasttrader.interactivebrokers.com\/eventtrader\/?loginType=1&amp;forwardTo=100&amp;clt=0&amp;ip2loc=OFF&amp;locale=en_US#\/market-details?id=798087648%7C20251210%7C3%7CDecember%2010,%202025\" target=\"_blank\" rel=\"noreferrer noopener\">86%<\/a> for several weeks against the backdrop of subdued volatility relative to its southern neighbor.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"488\" data-src=\"https:\/\/www.interactivebrokers.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture4-BOC-1100x488.jpg\" alt=\"Historical pricing of IBKR ForecastTrader Contract asking if Bank of Canada will leave interest rate unchanged on December 10.\" class=\"wp-image-235762 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture4-BOC-1100x488.jpg 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture4-BOC-700x311.jpg 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture4-BOC-300x133.jpg 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture4-BOC-768x341.jpg 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture4-BOC-1536x681.jpg 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2025\/12\/Picture4-BOC-2048x909.jpg 2048w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/488;\" \/><\/figure>\n\n\n\n<p><em>Source for images: ForecastEx<\/em><\/p>\n\n\n\n<p><em>Note: Prices are highest bids as of the morning of Dec. 9, 2025.<\/em>&nbsp;<\/p>\n\n\n\n<p><em>To learn more about ForecastEx, view our Traders\u2019 Academy video&nbsp;<\/em><a href=\"https:\/\/www.youtube.com\/watch?v=ceR-weGZSXc\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><em>here<\/em><\/strong><\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yesterday\u2019s ForecastEx trading included a few block trades characterized by 10k contracts or more in a single transaction.<\/p>\n","protected":false},"author":903,"featured_media":206992,"comment_status":"open","ping_status":"closed","sticky":true,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18929,18,6,8,9,26,3],"tags":[2267,446],"contributors-categories":[13760],"class_list":{"0":"post-235757","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-forecast-trader","8":"category-macro","9":"category-north-america","10":"category-region","11":"category-securities","12":"category-text-articles","13":"category-traders-insight","14":"tag-bank-of-canada","15":"tag-federal-reserve","16":"contributors-categories-ibkr-macroeconomics"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.5) - 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In this capacity, he is responsible for economic analysis, economic commentary and educational content focused on the economy. Prior to joining Interactive Brokers, Jos\u00e9 spent 6 years working as an economist in the United States government within the Federal Deposit Insurance Corporation (FDIC) and the Bureau of Labor Statistics (BLS). During his time with the U.S. government, Jos\u00e9 frequently led presentations covering economic conditions and forecasts for elected officials, political appointees and senior management. He also built economic models, consulted with private sector executives, contributed to the modernization of economic processes and gained recognition for predicting the inflationary episode of the 2020s. Jos\u00e9 has also been a professor of economics at the City University of New York and holds a master\u2019s degree in financial economics from West Texas A&amp;M University. 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