Futures market players announced their views that US interest rates cut bets that the Fed will raise interest rates after this following an April jobs report showing only an increase of 266,000 jobs. The figure is far behind the target of almost 1 million.
The Eurodollar futures market shows that investors see less than a 50% chance that interest rates will rise in the short term. Investors also reduced quarterly interest rate expectations.
The Fed has previously promised to keep interest rates close to zero until jobs recover and inflation is above the 2% target for some time, but economists and investors see risks that government spending will cause inflation to surge higher.
Figures in March show indications that could drive up interest rates as employment figures are much better. The April data, however, made the market change their expectations.
