Fed seen cutting policy rate just once in 2025 as job growth surges

© Reuters. FILE PHOTO: The Federal Reserve building in Washington, U.S., January 26, 2022. REUTERS/Joshua Roberts/File Photo

(Reuters) – Traders on Friday bet the Federal Reserve will wait until at least June to reduce its policy rate, and end its rate-cutting cycle there after government data showed employers added far more jobs than expected in December.

Traders before the monthly jobs report had seen the Fed cutting as early as May and saw about a 50% chance of a second rate cut before the end of the year. 

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