Fed Weighs Delaying Rate Hike Amid Slowing US Jobs Growth

The US Federal Reserve is likely to hold off on raising interest rates in October due to a weaker-than-expected labor market, according to recent government data. Employers added just 29,000 jobs in September, far below the 90,000 economists had predicted. The unemployment rate also ticked up to 4.2 per cent from 4.1 per cent.

The Fed raised short-term borrowing costs by a quarter of a percentage point last month to help get inflation back on track to 2 per cent. However, policymakers may reconsider this decision after the latest jobs report, which could impact their plans for another rate hike by year-end.

Interest-rate futures contracts are now priced with less than a one-in-five chance of a rate hike at the Fed's October meeting, down from more than one-in-four previously. Traders have also eased bets on a December rate hike, though that is still priced at nearly 90 per cent probability.