Fed funds odds of 75 basis-point cut jump after jobs report
By Laura Mandaro
Last update: 10:36 a.m. EST March 7, 2008
SAN FRANCISCO (MarketWatch) -- The odds of the Federal Reserve cutting interest rates by 75 basis points in March, to 2.25%, jumped Friday after the Labor Department said it estimated the U.S. economy lost 63,000 nonfarm jobs in February. The April fed funds futures contract on the Chicago Board of Trade rose to 97.74 from a settlement Thursday of 97.69, with the most recent contract implying about a 96% chance of a 75 basis-point cut. On Thursday, the futures priced in odds of about 76%. Some analysts are now anticipating a surprise move by the Federal Reserve.
By Laura Mandaro
Last update: 10:36 a.m. EST March 7, 2008
SAN FRANCISCO (MarketWatch) -- The odds of the Federal Reserve cutting interest rates by 75 basis points in March, to 2.25%, jumped Friday after the Labor Department said it estimated the U.S. economy lost 63,000 nonfarm jobs in February. The April fed funds futures contract on the Chicago Board of Trade rose to 97.74 from a settlement Thursday of 97.69, with the most recent contract implying about a 96% chance of a 75 basis-point cut. On Thursday, the futures priced in odds of about 76%. Some analysts are now anticipating a surprise move by the Federal Reserve.