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Probability of Fed Cutting Interest Rates Three Times by Year End Rises to 71%

Summary: According to sources, following weaker-than-expected non-farm payroll report, futures market traders are increasingly betting on more rate cuts in 2025. Traders still strongly anticipate a 25 basis point rate cut by the Fed in September. Currently, traders believe there is a 71% chance of three rate cuts by the end of this year, up from ...

According to sources, following weaker-than-expected non-farm payroll report, futures market traders are increasingly betting on more rate cuts in 2025. Traders still strongly anticipate a 25 basis point rate cut by the Fed in September. Currently, traders believe there is a 71% chance of three rate cuts by the end of this year, up from 46% a day ago. The likelihood of the Fed cutting rates only once or less by year end has decreased from 7.9% a day ago to 1.5%.

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