Traders see the possibility of a May rate hike to 70% after the jobs report

City says 7,000 summer jobs are available for Boston youth ages 14 to 18

Last updated: April 7, 2023 at 9:29 a.m. ET

First posted: April 7, 2023 at 9:15 a.m. ET

Traders in Fed Funds futures at rates close to a 70% chance of a 25 basis point rate hike by the Federal Reserve when the central bank meets in May. The probability of a rally rose to 67.4% after the data, up from 49.2% the day before, according to data from CME’s FedWatch tool. Analysts said the March jobs report is likely to encourage the Fed to rally in May, as the labor market continued to see signs of strength last month. The US economy created 236,000 jobs, which is just short of the 238,000 median estimate from economists polled by The Wall Street Journal. The average hourly wage for private sector employees also slowed to…

Traders in Fed Funds futures at rates close to a 70% chance of a 25 basis point rate hike by the Federal Reserve when the central bank meets in May. The probability of a rally rose to 67.4% after the data, up from 49.2% the day before, according to data from CME’s FedWatch tool. Analysts said the March jobs report is likely to encourage the Fed to rally in May, as the labor market continued to see signs of strength last month. The US economy created 236,000 jobs, which is just short of the 238,000 median estimate from economists polled by The Wall Street Journal. Average hourly earnings for private sector employees also slowed to 4.2% over the previous 12 months. The Fed considers wage growth to be an important driver of inflation.