Fed Rate Futures Traders Increase Bets On Further Rate Cuts

According to Odaily, traders in Federal Reserve rate futures contracts increased their bets on further rate cuts by the Fed on Tuesday. This shift followed a government report indicating a reduction in job vacancies last month, suggesting a potential cooling of the labor market. Rate futures contracts now reflect growing confidence among traders that the Fed will implement a 25 basis point rate cut at each of its next two meetings, with further cuts anticipated next year. The probability of a rate cut pause in November has dropped to around 2% among traders. The U.S. job market showed signs of slowing down as the number of job openings in September fell to its lowest level since early 2021, accompanied by an increase in layoffs. The Job Openings and Labor Turnover Survey (JOLTS) released by the U.S. Bureau of Labor Statistics on Tuesday revealed that job vacancies decreased from a downwardly revised 7.86 million in July to 7.44 million in August.