Jobs Report Triggers Fed Rate Hike Expectations Amid Inflation Concerns

U.S. stocks were mixed on Friday after a stronger-than-expected jobs report was released, which has raised expectations of an interest rate hike by the Federal Reserve.

The Labor Department reported that employers added 162,000 jobs last month, exceeding the forecasted 65,000. The unemployment rate remained steady at 4.1%.

This unexpected increase in hiring could give the Fed more leeway to raise its benchmark short-term interest rate to combat inflation. Wall Street expects a rate hike before the year ends to cool inflation, which has been running hot due to rising oil prices amid the U.S. war with Iran.

However, Federal Reserve Governor Christopher Waller said that if new data next week shows inflation is cooling, he would be inclined to keep the Fed's benchmark interest rate unchanged. If the data shows hotter inflation, he would consider a rate hike.