Fed Rate Hike Odds Rise Amid Strong Job Growth, Eurozone Slows

The latest prediction markets suggest that the Federal Reserve will raise key interest rates at its upcoming September meeting, following stronger-than-expected job growth and rising Treasury yields.

In August, the Labor Department reported a significant increase in payroll jobs, with 162,000 new positions created, well above the consensus estimate of 55,000. The department also revised the July report to show 21,000 new jobs created, rather than a loss of 23,000.

Average hourly earnings rose by 0.3% in August and 3.1% over the past 12 months. However, the inflation rate remained unchanged at 4.1%, which may temper expectations for a rate hike.

The Fed's decision will be influenced by upcoming data releases, including CPI and PPI figures for August. The eurozone has also seen signs of economic weakness, with consumer prices declining 0.6% in July and retail sales plummeting in Germany and Spain.