Forex
Fed Hikes Interest Rate Plans on Hold After Disappointing Jobs Report
The Federal Reserve's interest rate hike plans have been put on hold due to a weaker-than-expected jobs report in July. According to CME FedWatch, the probability of the Fed holding its benchmark rate steady next month rose to 56%, up from 45% the previous day.
Indeed Hiring Lab senior economist Cory Stahle said that 'the chances of holding just went up pretty significantly today.' He noted that the jobs report may indicate the Fed will prioritize inflation over shoring up the job market.
The July employment figures showed a surprise 23,000-job loss last month. The Labor Department also revised down hiring data for May and June by a combined 103,000.