Fed, again, left with egg on its face as recovery falters

  • All of that happened amid a growing chorus of Fed members professing in recent weeks that a rate hike was appropriate and imminent.
  • Even September had only a 46 percent chance by midday Friday, according to the CME. November has just a 49 percent probability, with December now the most likely beat for a rate hike, at 66 percent, down sharply from 82 percent the day before.
  • Within two hours of the payroll report’s release, the market was projecting no rate hike until at least December .
  • All that hawkish Fed talk in recent weeks, as well as the market’s knee-jerk reaction, seemed kind of silly after Friday’s dismal jobs report.
  • Traders who had been pricing in a 58 percent chance of a July rate hike took the likelihood down to 34 percent.

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@EdmundCMoy: “Fed, again, left with egg on its face as recovery falters. You could make enough omelets for NYC w/all those eggs.”


All that hawkish Fed talk in recent weeks, as well as the market’s knee-jerk reaction, seemed kind of silly after Friday’s dismal jobs report.


Fed, again, left with egg on its face as recovery falters