Bank of America initially expected the Fed to stand pat this month while awaiting more data on whether its recent cuts have helped boost hiring. However, economists at the 120-year-old bank have recently changed their tune, updating their outlook for rate cuts in December and 2026.

Morgan Stanley said on Friday it now expects the U.S. Federal Reserve to deliver a quarter-percentage point rate cut in December, joining peers J.P.Morgan and BofA Global Research, following dovish remarks from central bank policymakers.

Mortgage rates remain near 6% as the Fed is expected to cut rates by 25 bps, with experts predicting minimal impact on home loans.

Bitcoin could drop to between $60K and $80K into year-end if the U.S. Federal Reserve holds interest rates steady at its policy meeting on Dec. 9-10. The BTC price has fallen sharply since the beginning of November as rate-cut expectations slipped below 50%.

The U.S. dollar slipped on Friday but held within recent ranges against major currencies as traders awaited next week's Federal Reserve meeting, where policymakers are widely expected to cut interest rates.

The Federal Reserve maintained its benchmark interest rate on Wednesday, keeping borrowing costs at their highest level in more than two decades despite a prolonged cooldown of inflation. An interest rate cut is widely expected in the coming months.

Silver traded near an all-time high, after US payroll data reinforced bets that the Federal Reserve will cut interest rates in its final policy meeting of the year. Gold edged up.

Gold enters the final days before the Federal Reserve meeting with a tone that is cautious but stable. The metal has pulled back from the early December highs, yet continues to defend a broad support area as traders position around expectations of a policy shift in 2026.