Following the June jobs report, market expectations for a Federal Reserve interest rate cut have notably diminished. Rate futures now indicate about an 80% chance of a Fed rate cut by September, down from 98% prior to the jobs data release. The probability of a rate cut at the July meeting has collapsed to around 5%, a sharp decline from approximately 24-27% seen before the report. Additionally, the odds of no rate cuts by the September Federal Open Market Committee (FOMC) meeting have increased from 5% a week ago to over 30%. This shift in market sentiment is influenced by stronger-than-expected job growth and a recent drop in U.S. inflation to 1.75%, which is below the Federal Reserve's 2% target. The inflation decrease, driven mainly by lower food, beverage, and utility prices, has heightened expectations for potential rate cuts in the near future, although the timing remains uncertain. As of early July, the probability of a rate cut by September has decreased from over 90% two weeks ago to around 65%. The next FOMC meeting is scheduled for September 18.