Kiss Goodbye To The Chance Of A Fed Interest Rate Cut In July
Thursday’s job report all but killed any chance of Fed action in July.
On Hold Until Something Breaks
Data on CME Fedwatch shows market participants believe there is only a 5.2 percent chance the Fed cuts rates in July.
The July 3 nonfarm payroll report was better than expected. In response, odds of a cut plunged from 23.8 percent to 5.2 percent.
Given Powell’s propensity to wait until the Fed understands what tariffs will do to inflation, cuts (or hikes) are on hold until something breaks.
Is everyone ruling out a hike?
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