The number of people employed in the US unexpectedly surged last month, reinforcing the reasons for the Federal Reserve to raise interest rates at a meeting later this month, but the rate hike is still far from certain. The increase in non-farm payrolls in August exceeded the expectations of all economists in the Bloomberg survey, and the unemployment rate remained at 4.1%. However, the latest report does not show that the labor market is increasing price pressure, and analysts still expect that the Federal Reserve's next interest rate decision will depend on the inflation data released next week. Meanwhile, US President Donald Trump once again pressured the Federal Reserve to cut interest rates in a social media post on Friday. Investors, on the other hand, raised their bets on the Federal Reserve's interest rate hike this month. BMO Capital Markets strategist Vail Hartman wrote in a report to clients: “Today's data supports the hawkish camp, but it's not enough to provide a decisive reason for the September 16 rate hike. Although the market's implied probability of interest rate hikes this month has increased, employment data will still be less important than inflation data.” According to federal funds rate futures pricing, investors expect the probability of a rate hike this month to rise from about 50% to just over 60%. On the one hand, Federal Reserve officials are worried that inflation will continue to be high; on the other hand, they still disagree on how to deal with monetary policy in the short term. New evidence of price pressure may push the Federal Open Market Committee to raise interest rates, while more moderate inflation data may keep the Federal Reserve on hold. Since this year, the Federal Reserve has kept interest rates unchanged for five consecutive meetings.

The number of people employed in the US unexpectedly surged last month, reinforcing the reasons for the Federal Reserve to raise interest rates at a meeting later this month, but the rate hike is still far from certain. The increase in non-farm payrolls in August exceeded the expectations of all economists in the Bloomberg survey, and the unemployment rate remained at 4.1%. However, the latest report does not show that the labor market is increasing price pressure, and analysts still expect that the Federal Reserve's next interest rate decision will depend on the inflation data released next week. Meanwhile, US President Donald Trump once again pressured the Federal Reserve to cut interest rates in a social media post on Friday. Investors, on the other hand, raised their bets on the Federal Reserve's interest rate hike this month. BMO Capital Markets strategist Vail Hartman wrote in a report to clients: “Today's data supports the hawkish camp, but it's not enough to provide a decisive reason for the September 16 rate hike. Although the market's implied probability of interest rate hikes this month has increased, employment data will still be less important than inflation data.” According to federal funds rate futures pricing, investors expect the probability of a rate hike this month to rise from about 50% to just over 60%. On the one hand, Federal Reserve officials are worried that inflation will continue to be high; on the other hand, they still disagree on how to deal with monetary policy in the short term. New evidence of price pressure may push the Federal Open Market Committee to raise interest rates, while more moderate inflation data may keep the Federal Reserve on hold. Since this year, the Federal Reserve has kept interest rates unchanged for five consecutive meetings.