Chance of September Interest Rate Hike Falls

On Friday, September 2nd, the Bureau of Labor Statistics released its monthly jobs report for August, calculating that the U.S. economy had added 151,000 non-farm payrolls and maintained a 4.9 percent unemployment rate. The number fell below many economists’ expectation of 180,000 new jobs for the month of August. It also represented a significant drop in new jobs added relative to an average of 263,000 for the months of July and August.

Taken together these factors have dampened the market’s expectations of a federal funds rate increase by the Federal Open Market Committee (FOMC) at the group’s September 21st meeting. A recent article by CNBC notes that, following a review of several “top banks’” predictions for the timing of the FOMC’s next rate hike, a majority find December a more likely month than September for the Committee to take action.

Sign Up for Our Newsletter


Connect with SFIG
LinkedIn logo
Join us on LinkedIn >
Twitter logo
Follow us on Twitter >
Wilmington ad

Quick Search

Advanced Search
Terms and Conditions | Privacy Policy