Fed's Benchmark Rate Hike and Extended Pause
On Wednesday, the Fed raised its benchmark rate for what it indicated could be the final time before taking an extended pause. This pause will allow the effects of the policy tightening to date to help reduce high inflation in the economy.
Traders' Delay Expectations for Policy Rate Easing
Before the positive jobs report, traders had anticipated the Fed would reverse course and begin easing the policy rate, currently within the 5.00%-5.25% range, by September. However, after the jobs data release, they predict any rate cuts will be postponed in the year.