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

The fact that the employment participation rate in the US has fallen well below expectations has also caused some changes in expectations from the Fed. While the market expects a 25 basis point cut from the Fed at the meeting on November 7th by 99.5 percent, the probability of no cut is almost zero…

The US economy added only 12 thousand to the workforce in October. Expectations were above 100 thousand. However, such a large decrease 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 percent. The remaining 0.5% is for the institution not to cut interest rates... In other words, there is no expectation of a 50 basis point cut at the moment.

Biden: The reason for the decline is the storm and strike

US President Joe Biden also attributed the decline in the workforce to the massive 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 the news was written.

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