Fed Rate Hike Odds Plummet Amid Weaker Jobs Report
The Federal Reserve's next move on interest rates has become increasingly uncertain following a weaker-than-expected jobs report and guarded remarks from Federal Reserve Chair Kevin Warsh.
According to Barclays, the odds of a rate hike at the Federal Open Market Committee (FOMC) in July have decreased due to the lower-than-expected 57,000 new payrolls added in June, missing Wall Street analysts' expectations of 115,000 jobs.
Warsh's speech at the European Central Bank Forum in Sintra, Portugal, offered few clues about the central bank's policy path going forward, but he did highlight that inflation was currently 'too high.'
Barclays expects an extended hold in policy rates, conditional on inflation, activity, and labor market conditions moderating through the summer.