{"id":279392,"date":"2026-02-11T22:19:08","date_gmt":"2026-02-11T22:19:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/279392\/"},"modified":"2026-02-11T22:19:08","modified_gmt":"2026-02-11T22:19:08","slug":"kevin-hassett-sees-plenty-of-room-for-a-fed-rate-cut-but-polymarket-disagrees-after-a-positive-jobs-report","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/279392\/","title":{"rendered":"Kevin Hassett Sees &#8216;Plenty Of Room&#8217; For A Fed Rate Cut, But Polymarket Disagrees After A Positive Jobs Report"},"content":{"rendered":"<p class=\"block core-block\">The U.S. economy <a href=\"https:\/\/www.benzinga.com\/markets\/economic-data\/26\/02\/50539465\/us-economy-adds-130000-jobs-in-january-but-over-a-million-vanishes-in-major-revision\" target=\"_blank\" rel=\"nofollow noopener\">added<\/a> 130,000 jobs in January, nearly double the 70,000 economists expected and the strongest monthly gain in months. The surprise came after the White House warned markets to brace for weakness.<\/p>\n<p class=\"block core-block\">Expectations were rock bottom heading into the report. The labor market added just 584,000 jobs in all of 2025, the worst year since 2020. December managed only 50,000 jobs.<\/p>\n<p class=\"block core-block\">White House economic advisor Kevin Hassett had pre-emptively told CNBC not to \u201cpanic\u201d and to <a href=\"https:\/\/finance.yahoo.com\/news\/white-house-adviser-hassett-expects-172528311.html\" target=\"_blank\" rel=\"nofollow noopener\">expect<\/a> \u201cslightly smaller job numbers.\u201d Instead, the 130,000 print suggests the labor market has more life than feared.<\/p>\n<p class=\"block core-block\">Prediction market participants rapidly repriced Federal Reserve expectations following the blockbuster jobs report, with Polymarket traders slashing the probability of near-term rate cuts.<\/p>\n<p>Market Odds Surge On Fed Pause<\/p>\n<p class=\"block core-block\">The odds of no rate change in March jumped from 80% to 92% on Polymarket\u2019s <a href=\"https:\/\/polymarket.com\/event\/fed-decision-in-march-885\" target=\"_blank\" rel=\"nofollow noopener\">Fed decision market<\/a> immediately after the jobs data dropped.<\/p>\n<p class=\"block core-block\">April probabilities for holding rates steady also surged, rising from 69% to 79% on the <a href=\"https:\/\/polymarket.com\/event\/fed-decision-in-april\" target=\"_blank\" rel=\"nofollow noopener\">April contract<\/a>. <\/p>\n<p class=\"block core-block\">June saw the odds of no cute increase from 31% to 37%.<\/p>\n<p>White House Stays Dovish Despite Data<\/p>\n<p class=\"block core-block\">The swift market repricing came as White House economic advisor Kevin Hassett maintained his dovish tone on monetary policy. <\/p>\n<p class=\"block core-block\">\u201cI think there\u2019s plenty of room for Fed to cut rates,\u201d Hassett said during media appearances.<\/p>\n<p class=\"block core-block\">Hassett projected robust economic performance ahead, telling reporters the AI boom can drive productivity and economic growth. <\/p>\n<p class=\"block core-block\">He said he can easily see 4% to 5% GDP growth this year, while emphasizing inflation numbers will be a key factor for Fed decisions.<\/p>\n<p class=\"block core-block\">The disconnect between Hassett\u2019s optimistic view on rate cuts and traders\u2019 rapid repricing may signal ongoing uncertainty about the Federal Reserve\u2019s policy path. <\/p>\n<p class=\"block core-block\">While the White House appears confident in the case for monetary easing, prediction market participants are betting the central bank will likely maintain its patient approach given the resilient labor market.<\/p>\n<p class=\"block core-block\">The sharp moves suggest investors are recalibrating expectations for when the Fed might resume its rate-cutting cycle, with March action now appearing increasingly remote.<\/p>\n<p class=\"block core-block\">Image: Shutterstock<\/p>\n","protected":false},"excerpt":{"rendered":"The U.S. economy added 130,000 jobs in January, nearly double the 70,000 economists expected and the strongest monthly&hellip;\n","protected":false},"author":2,"featured_media":279393,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,22530,156768,12224,219,111,139,69,12223],"class_list":{"0":"post-279392","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-category-markets","10":"tag-category-prediction-markets","11":"tag-cms-wordpress","12":"tag-economy","13":"tag-new-zealand","14":"tag-newzealand","15":"tag-nz","16":"tag-pageisbzpro-bz"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/279392","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=279392"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/279392\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/279393"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=279392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=279392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=279392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}