2023-08-04 14:17:00
A weaker-than-expected U.S. nonfarm payrolls report in July pushed the Federal Funds futures market’s implied probability of another rate hike this year to less than 30%. 2008 Washington, D.C. (2023 REUTERS/Jason Reed/File Photo)
(Archyde.com) – U.S. interest rate futures are pricing in a 30% chance of another rate hike this year following July’s weaker-than-expected nonfarm payrolls growth decreased below. Before the release of the employment data, it was regarding 35%.
Nonfarm payrolls rose by 187,000 in July, according to the U.S. Labor Department’s July jobs report, below the 200,000 increase expected by economists polled by Archyde.com.
“July’s jobs report doesn’t change the Fed’s hawkish stance, but officials are optimistic regarding the August jobs report and the next two years,” said Kathy Vostjancic, chief economist at Nationwide. “We’ll have to wait and see the 2020 inflation data and then decide whether to keep the Fed on hold or whether more rate hikes are needed to cool labor demand and inflationary pressures.”
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