Reply #40: Futures show Fed hike in question on puny payrolls

[UpInArms]

"puny" - what happened to that "mega" prediction?



http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-07-07T131554Z_01_N07177247_RTRIDST_0_MARKETS-FEDFUNDS-JOBS-UPDATE-1.XML

CHICAGO, July 7 (Reuters) - Prospects for an August interest rate increase by the Federal Reserve, as shown by short-term rate futures, fell sharply on Friday after a weak reading on June payrolls growth.

The market's view of chances for a Fed rate hike in August fell as low as 54 percent from 70 percent before the report as traders assessed that U.S. economic growth may be slowing.

Chances later edged up to 62 percent.

The Labor Department said 121,000 nonfarm payroll jobs were created in June, far below Wall Street forecasts for 185,000 and recent whisper numbers.

"This is proof positive that the economy is in a decelerating mode," said Richard Yamarone, chief economist at Argus Research in New York.

...more...

They did not whisper that 368,000 prediction! They trumpeted it!

:grr: