Slower US Hiring Bolsters Expectations of Rate Hike Delay Until December

Slowing hiring in the United States has strengthened expectations that the Federal Reserve will leave interest rates unchanged in October, with investors increasingly looking to December for a rise.

The weaker pace of recruitment has added to the case for holding off on an increase at the October meeting. Attention is now turning to inflation data due before policymakers gather.

Those figures will provide another indication of economic conditions as the Fed weighs whether to raise borrowing costs. The hiring slowdown has made the timing of that decision a sharper focus for markets.

Investors are betting strongly on a December increase, suggesting they see a pause in October as a delay rather than an end to the prospect of higher rates.