# Fed Related Articles

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Bets on a Fed Rate Hike are Falling, While the Probability of Rates Holding Steady in September Takes the Lead

Market expectations for a September Federal Reserve interest rate decision have shifted significantly, now strongly favoring a pause. According to leading prediction markets, the probability of the Fed holding rates steady is at 63% (Polymarket) and 65% (Kalshi), while the CME FedWatch Tool shows a tighter race at 55.6%. Collectively, these markets have seen over $25 million in bets on the outcome, with the chance of a pause roughly 30 percentage points higher than a hike. This represents a major reversal from just over a week ago when the CME tool indicated a 67% chance of a quarter-point hike. The shift accelerated following a weak July jobs report, which showed a loss of 23,000 non-farm payrolls. The consensus now is that September is essentially a two-way contest between a pause and a 25-basis-point increase, with a rate cut deemed highly unlikely. Despite the clear tilt toward a pause, a significant gap remains between the prediction markets and the CME futures, with the latter being the most "hawkish." All indicators remain sensitive to upcoming data, particularly the Consumer Price Index report. Stronger-than-expected inflation could quickly boost the odds of a hike, while moderate data would likely solidify market expectations for the Fed to hold its current target range of 3.50%-3.75% at its September 15-16 meeting.

cryptonews.ru08/09 20:08

Bets on a Fed Rate Hike are Falling, While the Probability of Rates Holding Steady in September Takes the Lead

cryptonews.ru08/09 20:08

The person closest to the Federal Reserve commented on US non-farm payroll data!

The U.S. non-farm sector lost 23,000 jobs in July, indicating the labor market has not yet stabilized following four months of positive growth, although the unemployment rate edged down to 4.1%. Following the weak jobs data, Wall Street Journal reporter Nick Timiraos, known for his close ties to Federal Reserve policy, stated that interpreting the July employment report will be a complex task for the Fed. According to Timiraos, the new data showing the labor market is no longer improving could reduce the need for the Fed to raise interest rates next month. However, the most critical factor determining the direction of the interest rate decision will be inflation data. He noted that market focus will remain on inflation, especially as unemployment continues to fall, with rising or falling price pressures likely to shape the Fed's approach to interest rate policy. Therefore, moderate inflation data could strengthen the argument for the Fed to leave rates unchanged. Specifically, two consecutive months of moderate inflation could be interpreted as a sign that slowing price pressures are becoming a more pronounced trend, not a temporary fluctuation. Conversely, positive inflation data could force the Fed to reconsider its current inflation forecasts and increase the likelihood of a rate hike. Timiraos added that if inflation proves to be high, forecasts of reaching inflation targets without changing interest rates could be questioned by more Fed officials. In such a scenario, support for a rate hike among policymakers could increase.

cryptonews.ru08/07 17:51

The person closest to the Federal Reserve commented on US non-farm payroll data!

cryptonews.ru08/07 17:51

Report: Warsh Prepared to Raise Interest Rates in September if Inflation Data Remains Strong in Coming Weeks

Report: Fed Chair Walsh Prepared to Hike Rates in September If Upcoming Inflation Data Stays Strong According to a Financial Times report, Federal Reserve Chair Walsh is prepared to raise interest rates at the September policy meeting if inflation data in the coming weeks remains hot and market expectations for a hike increase. Following this news, short-term US Treasury yields rose. Walsh has adhered to a pared-back communication strategy despite recent market volatility and criticism that his limited guidance has weakened the Fed's inflation-fighting credibility. Sources close to his thinking acknowledge some communication missteps since he took office but insist these won't derail his overall reform agenda. His most significant policy shift has been drastically reducing forward guidance, a practice he has long criticized for boxing in policymakers. Futures markets now price in roughly a 55% chance of a 25-basis-point rate increase in September. Sources indicate that while Walsh has raised the possibility of using balance sheet reduction to tighten policy, interest rates remain the primary tool for now. The Fed's preferred inflation gauge was at 3.7% in June. Walsh is expected to deliver his first major speech at the upcoming Jackson Hole symposium, seen as a key opportunity to clarify his policy framework and address perceived shortcomings in his messaging.

marsbit08/06 13:16

Report: Warsh Prepared to Raise Interest Rates in September if Inflation Data Remains Strong in Coming Weeks

marsbit08/06 13:16

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