Tags: traders | fed | rate | cuts | jobs

Traders Reduce Bets on 2019 Fed Easing After Jobs Report

Traders Reduce Bets on 2019 Fed Easing After Jobs Report
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Friday, 01 November 2019 09:18 AM

Futures traders decreased the amount of easing they expect from the Federal Reserve after the U.S. jobs report showed hiring was unexpectedly resilient in October.

January fed funds futures imply a rate of 1.525% at the end of 2019, having indicated around 1.50% just before the release of the data.

Assuming an effective fed funds rate of around 1.57% in the wake of Wednesday’s Fed decision, the market is pricing in around 4.5 basis points of further easing for this year. A full quarter-point cut is priced in for some time in the second half of 2020.

Payrolls rose 128,000 after an upwardly revised 180,000 advance the prior month, according to a Labor Department report Friday that exceeded the median 85,000 estimate in Bloomberg’s survey.

Earlier this week the central bank reduced interest rates by a quarter-percentage point for the third time this year. The Federal Open Market Committee altered language in its statement following the two-day meeting, dropping its pledge to “act as appropriate to sustain the expansion,” while adding a promise to monitor data as it “assesses the appropriate path of the target range for the federal funds rate.”

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Futures traders decreased the amount of easing they expect from the Federal Reserve after the U.S. jobs report showed hiring was unexpectedly resilient in October.
traders, fed, rate, cuts, jobs
191
2019-18-01
Friday, 01 November 2019 09:18 AM
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