Traders trim bets on June Fed rate cut after jobs data

ReutersMay 2, 2025 12:39 PM

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May 2 (Reuters) - Traders trimmed bets on Friday that the Federal Reserve will cut rates as soon as June after the U.S. Labor Department reported employers added more jobs than expected last month and the unemployment rate was steady at 4.2%, signs the job market remains in balance.

Traders now give a June rate cut about even odds, based on the price of futures contracts tied to short-term interest rates. That's down from about a 60% probability seen before the report.

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