Fed Rate Hike Odds Surge Past 70% Amid Strong US Labor Market and Consumer Spending

The US labor market continued to expand in September, with Bloomberg and Reuters surveys projecting nonfarm payroll gains of 90,000 and 100,000 respectively.

The unemployment rate is expected to hold between 4.1% and 4.2%, according to the forecasts.

August real consumer spending is forecast to rise 0.5% month-over-month, the largest increase in over a year.

This resilience lends support to the Federal Reserve's extended tightening path, with fed funds futures now pricing in a greater than 70% probability of another rate hike in October.