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Unemployment Decline Takes January Cut Off the Table: Jan. 9, 2026

Unemployment Decline Takes January Cut Off the Table: Jan. 9, 2026

Posted January 12, 2026 at 11:07 am

Jose Torres
IBKR Macroeconomics

The US decline to a 4.4% unemployment rate in December accompanied with accelerating wage pressures as detailed in the Friday, Jan. 9 Jobs Report is strengthening the chances that the Fed will pause at its meeting next month. Reduced joblessness paired with faster expansions in paychecks are lessening the need for imminent monetary policy accommodation as investors look forward to future meetings for a move lower in the central bank’s benchmark. Indeed, the 86% low as it relates to a steady Fed from Jan. 3, strengthened to a high of 97% as of Friday, Jan. 9, following the release of the labor market data.

Forecast Contract - Will the Fed leave the rate unchanged in January 2026?

Sentiment Revisions Are Historically Modest There’s a very low chance that this morning’s consumer sentiment print will be revised by +2.1 from 54 to 56.1 or higher when the final print is released in slightly less than two weeks. In the last 12 years, a revision of that magnitude has only happened a handful of

times (please see chart below.) The IBKR ForecastTrader platform has contracts with various thresholds for this metric.

Forecast Contract - Will the US Consumer Sentiment Index exceed 56 in January 2026?

Consumer Sentiment, Difference between Initial and Final, Line Chart.

Source for images: ForecastEx

Note: Prices are highest bids as of the morning of Jan. 9, 2026. Contract time to expiration is also as of Jan. 9, 2026

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Disclaimer:
Forecast Contracts are only available to eligible clients of Interactive Brokers LLC, Interactive Brokers Canada Inc., Interactive Brokers Hong Kong Limited, Interactive Brokers Ireland Limited and Interactive Brokers Singapore Pte. Ltd.

Futures, event contracts and forecast contracts are not suitable for all investors. Before trading these products, please read the Forecast Contract Risk Disclosure. Displayed outcomes and prices are based on real-time market sentiment from ForecastEx LLC, an affiliate of Interactive Brokers Group. Interactive Brokers Ireland Limited does not make recommendations with respect to any products available on its platform, including those offered by ForecastEx.

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