Markets Increase Bets on US Interest Rate Hikes
Unemployment rate drops to 4.1% as job growth beats expectations
Financial market traders have raised their projections for another interest rate hike by the Federal Reserve in December. This shift follows the release of official data on the United States labor market.
The government report shows that the unemployment rate fell to 4.1%. Additionally, employers added 165,000 new jobs last month.
The volume of new hires was more than double the initial forecast from economists. This heating labor market puts pressure on the country's monetary policy.
Interest rate futures now reflect an 80% probability of a 0.25 percentage point adjustment at the next meeting. Before these numbers were released, the expectation was around 75%.
Job market resilience in the United States tends to strengthen the dollar against other currencies.
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