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Traders firm bets on Fed?interest-rate cuts after weak jobs data

BY Reuters | ECONOMIC | 11/01/24 08:42 AM EDT

Nov 1 (Reuters) - An October jobs gain far short of expectations makes a Federal Reserve interest-rate cut next week a near certainty, traders bet on Friday, and firms up the chance of further reductions in December and well into next year.

Traders of futures that settle to the Fed's policy rate were pricing about a 99% chance of a quarter-point interest-rate cut on Nov. 7, to 4.5%-4.75%, compared with 92% before the meeting, after the Labor Department reported U.S. employers added just 12,000 jobs last month, compared with the more than 100,000 employers had expected. Traders also saw about an 89% chance that the policy rate will be in the 4.25%-4.50% range by year end, compared with 69% before the meeting (Reporting by Ann Saphir; editing by Philippa Fletcher)

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