NEW YORK, Aug 7 (Reuters) – U.S. interest rate futures on Friday reduced the chances that the Federal Reserve will raise interest rates at next month’s policy meeting after an unexpected decline in U.S. nonfarm payrolls for July.
The rate futures market has now priced in just a 43.9% chance of Fed tightening in September, compared with 57% before the jobs report, according to LSEG data. The probability that the Fed will hold rates next month rose to 60.4% versus 43.2% just before the data release.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Toby Chopra)
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