Fed Rate Hike Chances Cut as US Jobs Data Falls Short

US interest rate futures have reduced the chances of a Federal Reserve rate hike in September following an unexpected decline in July's nonfarm payrolls.

The jobs report, released on August 7, showed a lower-than-expected number of new hires, which has caused investors to reassess their expectations for future rate increases.

According to data from LSEG, the rate futures market now prices in just a 43.9% chance of Fed tightening in September, down from 57% before the jobs report was released.

The probability that the Fed will hold rates steady next month has risen to 60.4%, up from 43.2% prior to the data release.