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Traders Maintain Amount of Fed Easing Seen in 2020 After Jobs

Published 02/07/2020, 08:34 AM
Updated 02/07/2020, 09:28 AM
Traders Maintain Amount of Fed Easing Seen in 2020 After Jobs

(Bloomberg) -- Futures traders maintained the amount of easing they expect from the Federal Reserve this year after the U.S. jobs report showed employers hired at a stronger-than-expected pace in January.

January 2021 fed funds futures imply a rate of 1.255% at the end of 2020, having indicated 1.26% just before the release of the data. Assuming an effective fed funds rate of around 1.59%, the market is pricing in around 33.5 basis points of further easing for this year. It is fully pricing a quarter-point cut by October.

Payrolls increased by 225,000 after an upwardly revised 147,000 gain in December, according to a Labor Department data Friday that topped all estimates of economists. The jobless rate edged up to 3.6%, still near a half-century low, while average hourly earnings climbed 3.1% from a year earlier.

Latest comments

Once again, the Trump administration has lied and cheated. The employment level for the 12 months ending March 2019 was overstated by the Trump Labor Dept by a whopping 514,000 jobs. The average adjustment over the last 10 years has been an an increase, not a decrease, and not a decrease if this magnitude. Beware. The BLS will continue to goose their numbers between now and November, only to make a huge downward adjustment after the election.
well..I would tend to agree with most of what you are saying however. we have an authoritarian autocratic leader who is a bully and cares about nothing more than the stock market. I can't see him letting it slip even after the election.
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