US EditionDollar Firms as Strong US Jobs Data Temper Fed Rate-Cut Expectations
Markets now see about a 67% chance the Federal Reserve will hold rates in December after September jobs data showed 119,000 jobs added but unemployment rose to 4.4%, the highest since 2021.
- Ahead of the December 9-10 meeting, traders bet the Federal Reserve will keep its policy rate on hold, with short-term interest-rate futures showing about a 67% chance the Fed will not cut and the target rate at 3.75% to 4.00%.
- The September jobs report showed an uneven picture as U.S. employers added 119,000 jobs, surpassing the 50,000 forecast, but the unemployment rate rose to 4.4% from 4.3%, the highest since October 2021.
- Seema Shah cautioned that the jobs report is unlikely to tip the balance for a December cut, while Kay Haigh said `A December cut remains possible given continued labor market softness`.
- Many Fed officials signalled wariness about cutting further this year with inflation above the 2 per cent target, and odds of a December rate cut remained low as some analysts said cautious FOMC members may prevail next month.
- Using fed funds futures, the market-implied cut probability remains at 30%, while policymakers continue to watch the unemployment level closely, according to the CME FedWatch Tool.
16 Articles
16 Articles
Stronger Jobs Data Knocks Out December Rate-Cut Hopes
A December rate cut once viewed as nearly certain now appears unlikely after new federal data showed stronger-than-expected U.S. job growth. Employers added 119,000 jobs in September, more than double forecasts, while unemployment edged up to 4.4%, the highest since 2021. Economists say the solid hiring signals enough economic resilience for the Federal Reserve to pause its rate-cut cycle.FactSet’s survey now puts the odds of a December cut at j…
Chief Economist Johannes Mayr sees Fed heading for an interest break after US job data in conversation with Dietmar Deffner. Despite job growth, the central bank lacks the basis for an interest rate increase due to lack of data.
Dollar firms as strong US jobs data temper Fed rate-cut expectations
NEW YORK/LONDON :The dollar firmed against most major currencies on Thursday, after losing some ground as signs of faster U.S. job growth in September suggest the Federal Reserve is likely to pause cutting interest rates in December.Long-awaited data released on Thursday showed that employers added more job
Coverage Details
Bias Distribution
- 67% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
