Fed Hike Odds Jump to 68.4% for December After 172,000 May Jobs Gain
Updated
Updated · Reuters · Jun 5
Fed Hike Odds Jump to 68.4% for December After 172,000 May Jobs Gain
3 articles · Updated · Reuters · Jun 5
Summary
68.4% odds of a December Fed rate hike were priced into U.S. futures on Friday, up from 52% late Thursday after May payrolls far exceeded expectations.
172,000 jobs were added in May, with April revised up to 179,000, versus a Reuters forecast for 85,000 and a prior April estimate of 115,000.
The June meeting is still seen ending with rates unchanged at 3.50%-3.75%, but hopes for cuts have faded as the labor market stays resilient.
Kevin Warsh will chair the Fed later this month, facing stubborn inflation that analysts say is being driven by factors such as global oil prices that higher rates may not fix.