Wall Street Certain of Rate Cuts After Soft Jobs Data
Investors would probably bet their house that the Federal Reserve will slash interest rates later this month, after soft private jobs data bolstered the case for looser monetary policy.
Traders are pricing in a 99% chance of a quarter-point cut and a 1% chance of a half-point cut, according to the CME FedWatch tool. The odds that the Fed will hold rates steady have fallen to near zero, down from about 15% a week ago.
Weaker-than-expected ADP private payrolls data have prompted the shift in expectations.