The probability of the U.S. Federal Reserve cutting interest rates by 25 basis points to a target range of 3.5%-3.75% has fallen to 30%, down from 50% both a day and a week ago, and sharply from 98% a month ago, according to CME’s FedWatch tool.
The conviction has evaporated amid concerns over a prolonged data blackout, making it increasingly difficult for policymakers to make an informed decision. On Wednesday, the Labor Department confirmed that it wouldn’t release the jobs data for October, citing the record-length the recently concluded government shutdown.
At the same time, minutes of the October Fed meeting released Wednesday showed deep fissures over whether to pause or cut rates.
Bitcoin changed hands at $91,700 at press time, up 0.8% on a 24-hour basis.