(Reuters) -Federal Reserve policymakers has little reason to rush on rate cuts, traders bet Friday, after a government report showed the labor market is cooling but is far from collapsing.

With the unemployment rate steady at 4.2% and job growth slowing to a gain of 139,000 last month, Fed policymakers are seeing as waiting until September to cut rates, with just one more cut in view by December, based on trading in short-term interest-rate futures, which also showed traders backing away from bets that would pay off if the Fed delivered a third rate cut by year's end.