The probability that the US Federal Reserve will cut interest rates by 25 basis points to a target range of 3.5%-3.75% has fallen to 30%, down from 50% a day and a week ago, and sharply from 98% a month ago, according to CME’s FedWatch tool.
Conviction has evaporated amid concerns about a prolonged data freeze, making it increasingly difficult for policymakers to make an informed decision. On Wednesday, the Labor Department confirmed it would not release October employment data, citing the record length of the recently concluded government shutdown.
At the same time, minutes from the Federal Reserve’s October meeting released Wednesday showed deep fissures over whether to pause or cut rates.
Bitcoin changed hands at $91,700 at press time, up 0.8% in 24 hours.
