US Jobs Data Dents September Rate Hike Expectations

Financial markets have scaled back expectations of a Federal Reserve interest-rate hike in September after weak July jobs data, according to Reuters.

The U.S. economy lost 23,000 jobs in July, with the unemployment rate edging down to 4.1% from 4.2% in June.

Interest-rate futures now price the odds of a rate increase at below 50%, reversing earlier expectations that a hike was more likely than not.

Fed officials have maintained a hawkish stance, with several signalling support for higher interest rates or indicating they would be willing to tighten monetary policy if inflation remains persistent.