Traders bet that the Fed is slowing rate hike next year - ConsultFX

Traders bet that the Fed is slowing rate hike next year


Traders said the Federal Reserve Fund would need to slow down the rate of rate hikes next year after a government report showed that employers hired fewer employees in November than expected.

Added just 155,000 jobs last month, significantly less than the expected 200,000, this further exacerbates growing doubts in financial markets that the Fed will adhere to the strategy of three rate hikes over the next year. Recall doubts about the Fed rate hike in 2019 were recently caused by a significant sell-off in the stock market and heightened fears about a slowdown in the economy and the weakening effect of tax incentives in the United States. Recent comments by Fed Chairman Jerome Powell about the need for a "slowdown" under uncertain conditions added skepticism that the Fed could continue to raise rates just as aggressively.

Currently, more and more experts are inclined to believe that next year the Fed will make only one approach no earlier than the middle of the year. The published report is not weak enough to refuse to raise rates in December, but it will definitely contribute to the revision of the Fed's policy on raising rates in 2019.

The material has been provided by InstaForex Company -