Investing.com -- Short-term interest-rate futures traders are predicting a Federal Reserve policy rate cut in June, following a government report that showed the U.S. unemployment rate stood at 4% last month.
The traders are also anticipating a second rate cut by the end of 2025.
The expectations for the rate cuts follow the release of the U.S. January nonfarm payrolls, which showed a rise of 143,000 month-on-month, according to data from the Bureau of Labor Statistics.
This figure was lower than the median estimate of a 175,000 increase, which was based on a survey of 79 economists. The estimates ranged from an increase of 105,000 to 240,000.
In addition, the December nonfarm payrolls were revised upwards to 307,000 from an initial 256,000. The average monthly gain for U.S. payrolls in 2024 was also revised to 166,000 from the previous 186,000.
Average hourly earnings saw an increase of 0.5% month-on-month, compared to the prior increase of 0.3%, which was also the estimated increase.
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