Traders Doubt FED Rate Cut This Month After Strong Jobs Data

• Traders see almost no chance of a Federal Reserve rate cut this month after the December unemployment rate fell more than expected.
• US Treasuries fell, pushing yields higher, as bond traders adjusted their outlook for rate cuts.
• The market now anticipates two rate cuts in 2026, with the first expected by mid-year.
• The strong jobs data provides a clearer picture of the economy after a six-week US government shutdown delayed previous labor reports.
• Concerns about inflation persist among some Fed officials, potentially limiting the pace of future easing.

Why It Matters: Strong jobs data makes a FED rate cut this month highly unlikely, shifting expectations to mid-2026.