Traders bet Fed won't raise rates further as job market cools

  • 📰 Reuters
  • ⏱ Reading Time:
  • 43 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 97%

Business News News

Business Business Latest News,Business Business Headlines

A key gauge of labor market tightness that Federal Reserve Chair Jerome Powell has cited throughout the central bank's aggressive interest-rate hike campaign dropped to its lowest level since late 2021, a sign that a long-awaited cooling is underway and easing concerns borrowing costs will have to move much higher to bring down inflation.

Following the release of the monthly Job Openings and Labor Turnover Survey, or JOLTS report, investors upped their bets to a roughly 60% probability of no move following the May 2 to 3 meeting, compared to about a 43% chance the day before, based on pricing of interest-rate futures.

The ratio of job openings to job seekers fell to 1.67 on the last day of February from about 1.9, the lowest level since November 2021, a metric Powell and his fellow policymakers have been keenly following as they bid to sap the wind out of the labor market to bring inflation back to their 2% target rate without causing a recession., a measure of labor demand, also fell to its lowest level since May 2021 and data for January was revised lower to show 10.

Welcome relief on the job market front follows a key report last week that showed while inflation ebbed in February, it remained high enough to possibly compel the Fed to raise interest rates one more time this year. At their March policy meeting, most Fed policymakers signaled they expected to need to raise rates one more time, to 5.1%, and not to cut them until 2024.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Why is the Federal Reserve still around?

Powell is not going to see it that way . . . .

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Asian Stock Market: Fails to capitalize on steady Fed policy bets, oil maintains auction above $80.00Asian Stock Market: Fails to capitalize on steady Fed policy bets, oil maintains auction above $80.00 – by Sagar_Dua24 Asia Fed Oil PMI DollarIndex
Source: FXStreetNews - 🏆 14. / 72 Read more »

Crypto market momentum stalls as traders await the results of recent regulatory actionsRecent regulatory enforcement against the crypto sector has traders embracing caution, but noshitcoins says data does not show an uptick in short positioning. noshitcoins It’s funny how US government wants to ban BTC. However they have no problem selling the coins they seized.
Source: Cointelegraph - 🏆 562. / 51 Read more »