Following the release of the U.S. non-farm payrolls report in March, fed funds futures are currently pricing in a near 70% chance that the Fed will raise interest rates by 25 basis points when it meets in May.
Fed funds futures are currently pricing in a near 70 percent chance of a 25 basis point rate hike when the Fed meets in May.
The odds of a rate hike rose to 67.4 percent after the nonfarm payrolls data, up from 49.2 percent a day earlier, according to CME’s FedWatch tool. Analysts said the March jobs report could give the Fed more courage to raise interest rates in May, as the labor market remained strong last month.
The U.S. economy created 236,000 jobs in March, slightly below the median forecast of 238,000 in a survey of economists by the Wall Street Journal. Year-over-year growth in average hourly earnings for private sector employees slowed to 4.2%. The Fed sees wage growth as an important driver of inflation.
(This article is translated from MarketWatch)
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Fed funds futures are currently pricing in a near 70 percent chance of a 25 basis point rate hike when the Fed meets in May.
The odds of a rate hike rose to 67.4 percent after the nonfarm payrolls data, up from 49.2 percent a day earlier, according to CME’s FedWatch tool. Analysts said the March jobs report could give the Fed more courage to raise interest rates in May, as the labor market remained strong last month.
The U.S. economy created 236,000 jobs in March, slightly below the median forecast of 238,000 in a survey of economists by the Wall Street Journal. Year-over-year growth in average hourly earnings for private sector employees slowed to 4.2%. The Fed sees wage growth as an important driver of inflation.
(This article is translated from MarketWatch)