CoinDesk Analysis: Friday's Jobs Report Did Not Substantially Increase the Probability of a Federal Reserve Rate Hike, Market Reaction May Be Overdone
CoinDesk analysis indicates that despite increased market discussion about a potential Federal Reserve rate hike later this month following Friday's strong jobs report, the market's implied probability of a hike has not substantially risen. According to the CME Group FedWatch Tool, traders currently assign a 58% probability to a 25 basis point rate hike by the Federal Reserve, which is largely consistent with market expectations a week ago after Federal Reserve Chairman Warsh's hawkish remarks at the Jackson Hole meeting. The article suggests that the market's reaction to the jobs data might have been an overreaction, citing examples such as Bitcoin briefly falling from $81,300 to $78,700, and the two-year U.S. Treasury yield rising from 4.36% to 4.42%. The Federal Reserve's interest rate decision is scheduled for September 16, with inflation data on September 11 being a key factor.
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Source:CoinDesk · Source Link
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