Fed December Rate Cut Odds Drop to 6 Basis Points as October Jobs Report Shelved

Traders scaled back expectations for a Federal Reserve rate cut at the December 10 policy meeting after the U.S. Bureau of Labor Statistics confirmed it lacks sufficient data to release the October employment report, Jin10 reports. Federal funds futures markets saw selling pressure following the announcement, with swap markets now pricing in only 6 basis points of easing for December and a cumulative 19 basis points through January, down from 11 basis points before Wednesday. The Fed's benchmark rate currently stands at 3.75% to 4%. Leah Traub, portfolio manager at Lord Abbett, noted the absence of October unemployment data and the delayed November release until after the Fed meeting reduces the likelihood of a cut given divisions within the Federal Open Market Committee.