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CPI Didn’t Settle the September Fed Debate as CME and…
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FinanceFeeds
The gap is now clearest between traditional rates markets and prediction venues: CME FedWatch puts the probability of a 25-basis-point hike at about 44%, while Kalshi has it near 32% and Polymarket at roughly 33%.
Why CME, Kalshi and Polymarket Do Not AgreeThe differences between the three markets are not necessarily evidence that one is mispriced.
Kalshi’s September market currently assigns about 65% to no change, 32% to a 25-basis-point hike and only around 2% to a 25-basis-point cut.
The remaining disagreement is primarily between prediction markets and Fed Funds futures rather than between Kalshi and Polymarket themselves.
CME still sees something close to a two-in-five chance of a hike, while Kalshi and Polymarket are closer to one-in-three.