off-the-wire

Fed seen cutting rates by half a point in Sept, after weak jobs data

Kitco Media
By Reuters
Published:
Updated:
Reuters
Fed seen cutting rates by half a point in Sept, after weak jobs data teaser image

Aug 2 (Reuters) - Traders bet on Friday that the Federal Reserve will start easing policy in September with a big half-percentage-point interest rate cut, after government data showed employers added far fewer workers than expected last month, and the jobless rate rose.

Interest rate futures contracts now reflect about a 70% chance seen of a half-percentage-point rate cut next month, versus what was seen before the report as a 70% chance of a more usual quarter-point cut.

Reporting by Ann Saphir; editing by Mark Heinrich

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