Futures traders, tied to the Federal Reserve’s policy rate, bet Friday that the US central bank will hike its interest rate for a fourth straight 75-basis point next month, after a closely watched report showed US employers were bullish. It didn’t work even though it worked very slowly. high borrowing cost.
irrigated Fund futures prices implied a 90% chance that the Fed will raise its policy rate to a range of 3.75%-4% when it meets November 1-2, up from about 85% before the Labor Department report.
hiring The US continued at a solid, yet more moderate pace last month and the unemployment rate slid from two-tenths of a percentage point to 3.5%, indicating the labor market remains tight and interest rates are still rising. has proven to be flexible. irrigated. Friday’s US jobs report will give a new indication of inflationary pressures in the country.
Data shows 263,000 jobs were added in September – the smallest monthly advance since April last year – after a 315,000 increase in August, a Labor Department report showed Friday. The unemployment rate unexpectedly fell to 3.5%, and average hourly earnings rose strongly.
A continued slowdown in new positions is good news for the US Federal Reserve as it works to cool the economy and ease scorching inflation.
America federal Reserve Officials showed no intention of withdrawing from the most aggressive rate hike campaign in decades, emphasizing that the inflation battle was on.
James said, “We are also seeing other inflationary trends. There is a possibility of a temporary decline in the commodities that have been falling over the past few months. There are some signs of strength in metals as well as oil due to supply side tightness.”
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