Investors Bet Fed Will Hold Rates Ahead of Jobs Numbers
The market is pretty sure what the Federal Reserve’s next move will be–but that could change if Friday’s jobs data throw up a surprise.
Traders are currently pricing in a 93% chance that the central bank will hold interest rates at their current level when it announces its next policy decision Wednesday, according to the CME FedWatch tool. The market thinks the odds of a rate cut stand at just 7%.
The April nonfarm payrolls report, due at 8.30 a.m. Eastern time, could either confirm or shake up that outlook. If the data signal that President Donald Trump’s tariff plans have driven unemployment up by more than economists are expecting, the central bank could come under pressure to start cutting borrowing costs as soon as possible.