The Fed may cut interest rates again in December but skip January, according to traders' predictions.

• The Federal Reserve's decision to cut interest rates by a quarter percentage point in November fueled anticipation for further cuts in December.
• The federal funds rate was lowered by the U.S. central bank to a range of 4.5% to 4.75% on Thursday afternoon.

After the Federal Reserve cut rates by a quarter percentage point in November, expectations for a December interest rate cut remained strong. However, market pricing is now suggesting the possibility of a "skip" in January.

The federal funds rate, set by the U.S. central bank, was lowered to a range of 4.5% to 4.75% on Thursday afternoon. This rate determines what banks charge each other for overnight lending.

The CME FedWatch Tool indicated that before the Fed's decision was released at 2 p.m. ET, market pricing suggested a 67% chance of a quarter-point cut in December and a 33% chance of a pause that month.

The likelihood of a quarter-point December rate cut increased to over 70% after the meeting, while the likelihood of a pause decreased to approximately 29%. The future rate probabilities obtained from the CME FedWatch Tool are based on trading in 30-day fed funds futures contracts.

The probability of the Federal Reserve not reducing interest rates in January was approximately 71%, which was slightly higher than 67% before the Fed's November decision was announced on Thursday afternoon.

— CNBC's Jeff Cox contributed to this report.