Fed Rate Hike Bets Surge as US Jobs Data Exceeds Expectations
US jobs data released on Friday added fuel to speculation of an imminent Federal Reserve rate hike. The surprise strength in hiring numbers, coupled with a rebound in UK job placements, has investors reevaluating their bets on a September rate increase.
The US saw employers add 162,000 jobs in August, more than double the expected 65,000, according to economists. Unemployment held steady at 4.1%, but wage growth slowed to an annual 3.1%, its lowest level in five years.
In contrast, UK permanent job placements rose for the first time since September 2022, marking a significant turning point in Britain's hiring recovery. The Recruitment and Employment Confederation (REC) reported that their index increased to 50.5 in August from July's flat reading of 50.0.
The US data, however, has pushed the odds of a Fed rate hike to nearly 60%, up from a coin flip just days prior. The same surge was seen in Bitcoin (BTC), which dropped as much as 3.5% to $78,649 following the report's release.