New U.S. employment data released shows that the labor market continues to cool down, bringing about a significant shift in interest rate expectations. According to CME Group's FedWatch tool, the probability that the Fed will keep rates unchanged at the October meeting has surged to 83%, while the chance of further rate hikes is now only 17%.
This move is important because it partially reverses concerns about tighter policy after the rate increase earlier in mid-September. The pricing for future markets now reflects cumulative hikes of only about 22.2 basis points through the end of 2026, down sharply from 25.5 basis points before the employment figures came out.
In traditional financial markets, pressure from Treasury bond yields and the USD index is showing signs of easing as the Fed pausing its tightening scenario becomes clearer. Large capital flows are beginning to look for safety and reallocate into investment channels that have attractive valuations after a period of strong pressure.
For the crypto market, investor sentiment $BTC đ is gradually stabilizing again as the liquidity risk that was tightened too much in the short term has eased. If the next macro data continues this trend, the digital asset market will have more room to recover and build new growth momentum. 📊
#Fed #InterestRates #MacroEconomics
This move is important because it partially reverses concerns about tighter policy after the rate increase earlier in mid-September. The pricing for future markets now reflects cumulative hikes of only about 22.2 basis points through the end of 2026, down sharply from 25.5 basis points before the employment figures came out.
In traditional financial markets, pressure from Treasury bond yields and the USD index is showing signs of easing as the Fed pausing its tightening scenario becomes clearer. Large capital flows are beginning to look for safety and reallocate into investment channels that have attractive valuations after a period of strong pressure.
For the crypto market, investor sentiment $BTC đ is gradually stabilizing again as the liquidity risk that was tightened too much in the short term has eased. If the next macro data continues this trend, the digital asset market will have more room to recover and build new growth momentum. 📊
#Fed #InterestRates #MacroEconomics