The U.S. Labor Department’s decision to delay the October employment report has prompted traders to adjust their expectations for the Federal Reserve’s December policy meeting. This move led to a sell-off in federal funds futures markets, as traders now anticipate a smaller cut of 25 basis points at the December 10th meeting. Instead, they predict the Fed will maintain its benchmark interest rate between 3.75% and 4%. The swaps market, which reflects changes to the Fed’s policy rate, currently predicts just a 6-basis point cut for December, with a cumulative reduction of only 19 basis points by January. Before Wednesday, the swaps market had priced in a more significant 11-basis point cut, highlighting expectations of a rate cut from the Fed within the next three weeks.