Rate futures show higher odds of Federal Reserve pause
Rate futures show lower hike expectations after April job gains. Markets now see a 74.1% chance the Federal Reserve holds interest rates steady this December.
Xurve View
Xurve View
United States interest rate futures fell to an 18% chance of a December hike. Nonfarm payrolls rose 115,000 in April, more than doubling economist forecasts of 62,000. The stronger labor market signals the Federal Reserve may hold rates steady rather than continue tightening.
The probability of the Fed keeping rates unchanged rose to 74.1% from 70.1% late the previous evening. This shift reflects market expectations that the economy can sustain itself without additional rate increases despite persistent inflationary pressures.