Weak September Jobs Report Sinks Fed Rate Hike Odds

· Finance · United States

U.S. nonfarm payrolls rose by just 29,000 in September, far below the 84,000 forecast, while the unemployment rate climbed to 4.2%. Traders sharply cut the odds of a Fed rate increase this month in response to the soft labor market.

Why it matters：The surprise miss reshapes expectations for U.S. monetary policy and global rate paths, affecting borrowing costs, the dollar and asset prices worldwide.

Key points

  • Payrolls came in at 29,000 versus an 84,000 forecast.
  • The unemployment rate rose to 4.2%.
  • Rate-hike odds for October tumbled after the release.

Sources (original reporting)

More stories from this day