The expectation of a rate cut by the Federal Reserve in December has cooled, and traders have reduced their rate cut expectations

According to Jin Shi reports, after the U.S. Labor Department announced it would not release the employment report for October, traders expect the Federal Reserve is more likely to pause interest rate cuts at the December policy meeting. The federal funds futures market saw a sell-off, with traders reducing expectations for a 25 basis point rate cut at the December 10 meeting, anticipating the benchmark rate will remain in the range of 3.75% to 4%. The swap market is pricing in only a 6 basis point cut for the December meeting, with a cumulative cut of 19 basis points by January. Leah Traub stated that the lack of key data reduces the likelihood of rate cuts.