JPMorgan has updated its economic outlook, now expecting the Federal Reserve to cut interest rates by 0.25% in December. This shift in expectation aligns with changing market sentiment regarding the central bank's monetary policy path before the end of the year. Prediction markets like Kalshi are currently pricing in this optimism heavily, showing an approximately 84% probability of a rate reduction. This high confidence level suggests that traders are pricing in increased liquidity, which could have implications for broader financial markets. [Update 1] Additional reports confirm JPMorgan's revised forecast and the strong correlation with prediction market data, reinforcing the expectation of monetary easing.