Fed Rate Hike Chances Tumble on Weak Jobs Data

The US Federal Reserve's interest rate hike prospects have been downgraded following the release of July jobs data.

Futures markets now put the chances of a rate increase at the September Federal Open Market Committee meeting at just under even odds, with the probability of a Fed tightening in September dropping to 43.9 percent from 57 percent before the jobs report.

The jobs market has shown relative weakness, with the US economy losing 23,000 jobs in July amid a modest decline in the unemployment rate to 4.1 percent from June's 4.2 percent.

Despite this, Federal Reserve Bank of Richmond President Thomas Barkin said that the data was 'very consistent with how I've been seeing the labor market', which is not loose or tight.