Slower US Hiring Bolsters Expectations of Rate Rise 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 looking to December for a possible increase.

The softer pace of recruitment has added to the case for waiting before tightening monetary policy. Attention is now turning to inflation data due ahead of the Fed’s meeting.

Those figures could help shape expectations about the timing of the next rate rise, as investors weigh weaker hiring against developments in prices.

Despite expectations of an October pause, investors are betting strongly on a December increase. The outlook points to a delay in the anticipated move rather than an expectation that rates will remain unchanged indefinitely.