After the non-farm payroll announcement, the probability of the Federal Reserve cutting interest rates by 25 basis points in November has risen to 89.4%

ChainCatcher news, according to Jinshi reports, after the non-farm data was released, CME's "Fed Watch" showed that the probability of the Federal Reserve cutting interest rates by 25 basis points in November is 89.4%, and the probability of a 50 basis point cut is 10.6%.

The cumulative probability of a rate cut by 50 basis points in December is 74.5%, while it's at 23.7% for a cumulative reduction of 75 basis points; The chance for a total decrease of 100 basis points stands at only1.8%.

Before the non-farm data was announced, however, there was a likelihood of about71.5% that Fed would reduce its rates by up to25 basepoints come November with chances standing at28.5% for an overall reduction reaching up to50 basepoints.
By December though these probabilities change: they stand at45.8% for an accumulated drop reaching as much as50 basepoints and44% when considering potential reductions totaling75 basepoints; As far as cuts amounting to100 basepoints are concerned their likelihood stood merely around10.2%.