- Following recent payrolls data, traders now see a 75% chance of the Federal Reserve easing rates by 25 basis points at its September meeting, a significant increase from 45% before the jobs report.
- The Federal Reserve maintained its policy interest rate range at 4.25-4.50% in its latest meeting, aiming to bring inflation closer to its 2% target.
- Despite the Fed holding rates steady, some officials, like Christopher Waller, have advocated for earlier rate cuts, citing inflation being near target and limited upside risks.
- While the labor market still appears healthy, there are signs of softening, with a slowdown in job creation and a slight increase in continuing jobless claims, suggesting it may be harder to find new employment.
- Experts suggest that any significant weakening in upcoming employment reports could prompt the Fed to cut rates sooner than anticipated.
US interest rate futures show increased likelihood of Fed rate cut in September
Aug 1, 2025, 12:38:10 PM UTC(1 day ago)
Impact: High
From:@DeItaone
U.S. INTEREST RATES FUTURES SHOW HIGHER RISK OF FED CUT AT NEXT MEETING AFTER PAYROLLS DATA
FUTURES IMPLY TRADERS SEE 75 PCT CHANCE FED EASING 25 BP AT SEPT MEETING, VS 45% BEFORE JOBS REPORT
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