US employment data heats up, Polymarket predicts a 96% chance that the Federal Reserve will pause interest rate cuts in January

【BlockBeats】As soon as the latest employment data from the US Bureau of Labor Statistics is released, market instincts become highly sensitive. Traders begin to adjust their expectations for the Federal Reserve’s next move, increasing bets on a pause in rate cuts in January.

Data on Polymarket best illustrates the point— the probability that the Federal Reserve will not cut rates in January has surged to 96% in the short term, while the chance of a rate cut has dropped to only 5%. This overwhelming disparity reflects the market’s interpretation of the employment situation: it’s not time to breathe a sigh of relief yet.

Employment data is often a key reference for the Federal Reserve’s policy decisions. When the employment market underperforms, the room for rate cuts shrinks. The current shift in expectations also confirms this logic— the market is voting with data, telling you how likely it is that the rate hike pause will happen.