US rate futures lift hike odds after strong jobs data
U.S. interest rate futures now price in a 68.4% chance of a Federal Reserve rate hike in December following a significant payrolls report. Nonfarm payrolls increased by 172,000 in May, which far exceeded economist forecasts and suggests a resilient labor market despite inflationary pressures.
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United States rate futures priced in a 68.4% chance of a December rate hike following a 172,000-job surge in May payrolls. This probability rose from 52% late the previous evening after nonfarm payrolls exceeded the 85,000-job forecast by 87,000. Resilient labor data forces investors to abandon rate-cut expectations as the Fed prioritizes cooling persistent inflation.
