Fed Rate-Hike Odds for This Year Climb to 77% Despite Weak July Job Openings
Summary
- Markets were pricing in a 77% chance of a Fed benchmark rate increase before 2027.
- Cointelegraph, a cryptocurrency-focused media outlet, reported that the odds of a Fed rate increase this year had climbed to 77%.
- Even though July job openings came in below market expectations, signaling a cooling labor market, markets were still assigning a high probability to a rate increase this year.
Forecast Trend Report by Period
Markets are pricing in a 77% chance that the Federal Reserve will raise its benchmark interest rate before 2027.
Cointelegraph, a cryptocurrency-focused media outlet, reported on September 1 that the odds of a Fed rate increase this year had risen to 77%.
The shift came even though U.S. job openings for July missed market expectations, signaling a cooling labor market.
A weaker labor market typically lowers the need for tighter monetary policy. Even so, markets are still assigning a high probability to a rate increase before year-end.
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