The report of the weak jobs in July strengthens the expectations for the low interest rate for the month of September

Market pricing increasingly in opportunities Federal Reserve Reducing interest rates at its next meeting in September after the weakest jobs report is expected last week.

The Federal Reserve Policy Arm is chosen by the FOOC Open Market (FOMC), against reducing interest rates in all its five meetings this year, including last week, as stubborn The shadow of inflation is higher The central bank’s goal is 2 % and the definitions that pose inflation to the top.

Although inflation has not yet decreased, the market believes that the FBI detention pattern is approaching its end when the next interest rate announces the next 17 September.

According to the CME Fedwatch tool, the market now sees 90.4 % of interest rates at the Federal Reserve by 25 points after its next meeting-an increase of 63.3 % a week ago and 64 % last month.

In a three -decade opposition, two conservatives in the Federal Reserve wanted to reduce interest rates and here is the reason for this

The changes come after FOC held fixed prices at its meeting last July.

Federal Reserve Chairman Jerome Powell “The labor market is widely balanced and corresponds to the maximum employment,” the labor market said.

He also pointed out that the evidence indicates that American companies and consumers pay most The cost of definitionsInstead of foreign exporters who reduce their prices to calculate the definitions.

Trump wears Powell as a “fool” and calls on the Federal Reserve to control politics.

Powell said that the central bank is in a good position to respond to any DeteriorationAnd the market took its comments to be a relatively honesty about inflation. After the announcement, the opportunity to reduce the interest rate from September fell from 63.3 % to 47.3 % on Wednesday.

Last week also witnessed the issuance of the preferred inflation scale of the Federal Reserve, where the PE PECE (PCE), which showed an annual basis in PCE to 2.6 % in June, increased from 2.3 % in May. The basic PCE hypertrophy, which excludes flying food and energy prices, increased above 2.7 % to 2.8 %.

The Federal Reserve’s favorite inflation scale shows that consumer prices rose again in June

The market considered that the news reduces the probability of reducing the interest rate in September, as the probability of reducing 46.7 % decreased to 39 %, for each CME Fedwatch tool after the news.

the Job report in July It was released on Friday and received 73,000 additions – much lower than 110,000 estimates than the economists of LSEG. It also contained regular reviews that left job opportunities in May and June by 258,000 jobs.

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The average reduction risk increased after the weak function report, as the CME Fedwatch tool shows a leap from 37.7 % to 73.6 % on the news.