September Fed hike odds top 60% after payrolls jump 162,000

BitcoinWorld September Fed hike odds top 60% after payrolls jump 162,000 Traders raised bets on a Federal Reserve rate increase in September after the U.S. labor market delivered a much stronger August than expected.

The Bureau of Labor Statistics said nonfarm payrolls rose by 162,000 last month. Economists had clustered around 55,000–56,000. The unemployment rate was unchanged at 4.1%. July payrolls were revised to a gain of 21,000 from the previously reported loss of 23,000.

After the 8:30 a.m. ET release, desks citing the interest-rate swaps market said the implied probability of a September hike moved above 60%.

Fed-funds futures told a similar story with slightly different levels depending on the timestamp: Briefing.com had CME FedWatch at 58.2% for a 25-basis-point hike, up from 49.4% the prior day.