How will the employment figures, which are well below expectations, affect the Fed? Priced at 99%

The fact that employment participation in the USA was much lower than the forecasts caused some changes in the expectations from the Fed. While the market expects a 25 basis point cut from the Fed at a 99.5% rate at the meeting on November 7, the probability of no discount is almost non-existent.

How will the employment figures, which are well below expectations, affect the Fed? Priced at 99%

The US economy added only 12,000 people to its workforce in October. Expectations were over 100,000. Such a large decline was not perceived by the market as a recession threat. According to the CME Fed Watch Tool, which shows the expectations of futures markets, the expectation is still for the Fed to make a 25 basis point cut on November 7th…

According to the rates in the Fed Watch Tool, market participants expect a 25 basis point cut from the Fed next week by 99.5%. The remaining 0.5% rate is for the institution not to make a rate cut… In other words, there is no expectation of a 50 basis point cut at the moment.

Biden: Reason for the decline is the storm and strike

US President Joe Biden also attributed the decline in the workforce to the major storm that hit the Florida coast in recent weeks and the strikes by port workers. Biden stated that he expects employment to rise again in November.

Bitcoin was not affected positively or negatively by the employment and 4.1% unemployment figures. The largest cryptocurrency is trading around $70,200 at the time of writing.

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