{"id":7530,"date":"2025-09-07T07:18:52","date_gmt":"2025-09-07T07:18:52","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/7530\/"},"modified":"2025-09-07T07:18:52","modified_gmt":"2025-09-07T07:18:52","slug":"50-bps-rate-cut-odds-revive-on-slowing-labor-market","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/7530\/","title":{"rendered":"50 Bps Rate Cut? Odds Revive on Slowing Labor Market"},"content":{"rendered":"<p>Following August\u2019s nonfarm payrolls data, the odds of a 50 bps rate cut during the September 16-17 <a href=\"https:\/\/www.tipranks.com\/calendars\/economic\/fed-interest-rate-decision-6969\" rel=\"nofollow noopener\" target=\"_blank\">Federal Open Market Committee (FOMC) meeting<\/a> rose to 14.3%, up from 0% since August 14. In addition, the odds of a 25 bps rate cut are now at 85.7% compared to 96.4% yesterday and 86.4% a week ago.<\/p>\n<p>Elevate Your Investing Strategy: Take advantage of <a data-link=\"article_promo\" href=\"https:\/\/lp.tipranks.com\/july-2025-50off\/?llf=rss&amp;timer=on&amp;coupon=INTRO50P\" rel=\"nofollow noopener\" target=\"_blank\"> TipRanks Premium at 50% off! <\/a> Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.<\/p>\n<p>CME\u2019s odds seem to seal a deal for a rate cut, with chances of the federal funds rate staying unchanged at 0%, down from 3.6% yesterday and 13.6% a week ago.<\/p>\n<p>Nonfarm Payrolls Add to Labor Market Concerns<\/p>\n<p>The Fed is more incentivized to cut rates with a slowing labor market because lower borrowing rates can stimulate economic growth and hiring. August\u2019s <a href=\"https:\/\/www.tipranks.com\/calendars\/economic\/non-farm-payrolls-5600\" rel=\"nofollow noopener\" target=\"_blank\">nonfarm payrolls<\/a> showed 22,000 new jobs, badly missing the estimate of 75,000 additions. Furthermore, July and June\u2019s jobs counts were lowered by a combined 21,000 jobs, with June ending up at a loss of 13,000 jobs. That ends a 53-month streak of monthly payroll gains.<\/p>\n<p>The three months ending in August have now averaged 29,000 new jobs per month, the lowest rate since the Covid pandemic.<\/p>\n<p>Stay ahead of macro events with our up-to-the-minute <a href=\"https:\/\/www.tipranks.com\/calendars\/economic\" rel=\"nofollow noopener\" target=\"_blank\">Economic Calendar<\/a> \u2014 filter by impact, country, and more.<\/p>\n<p><a href=\"https:\/\/www.tipranks.com\/glossary\/d\/disclaimer-disclosure\" style=\"margin-right: 32px;\" rel=\"nofollow noopener\" target=\"_blank\">Disclaimer &amp; Disclosure<\/a><a href=\"https:\/\/www.tipranks.com\/glossary\/c\/contact-editor\" rel=\"nofollow noopener\" target=\"_blank\">Report an Issue<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Following August\u2019s nonfarm payrolls data, the odds of a 50 bps rate cut during the September 16-17 Federal&hellip;\n","protected":false},"author":2,"featured_media":7531,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-7530","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/7530","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=7530"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/7530\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/7531"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=7530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=7530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=7530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}