Friday’s jobs report virtually cements that the Federal Reserve will approve an interest rate cut when it meets later this month. Whether it should, and what it does from there, is another matter. The not-too-hot, not-too-cold nature of the November nonfarm payrolls release gave the central bank whatever remaining leeway it may have needed to move, and the market responded in kind by raising the implied probability of a reduction to close to 90%, according to a CME Group gauge. However, the central bank in the coming days is likely to face a vigorous debate over just how fast and how far it should go.
Source: CNBC – Bonds
