U.S. Jobs Data Strengthens Market Expectations for a September 16 Fed Rate Hike

According to Jin10, stronger-than-expected U.S. August employment data led markets to raise expectations for a Federal Reserve rate hike on September 16. LSEG data showed markets were pricing in a 61% probability of a Fed rate hike, compared with equal 50% expectations for a hike or no change before the data was released. The data showed the U.S. added 162,000 jobs in August, three times economists' forecast of 53,000, and July employment data were also revised higher.