Slower-than-expected U.S. Jobs Growth Reduces Odds of Fed Hike

Dow Jones07-02 22:38

1038 ET - Odds of an interest rate increase by the Fed decline in futures markets as slower-than-expected job creation in June gives the central bank fewer reasons to be hawkish. Investors are pricing in 18% odds of a July hike, down from 29% yesterday, according to the CME's FedWatch tool. Odds of at least one cut by year end fall to 76% from 83%. The BLS reports 57,000 new jobs in June, while economists surveyed by WSJ expected 115,000. "The combination of more tepid data on the labor market and the sharp decline in oil prices should reduce the likelihood of rate hikes from the Fed," AllianceBernstein's Eric Winograd writes. (paulo.trevisani@wsj.com; @ptrevisani)

(END) Dow Jones Newswires

July 02, 2026 10:38 ET (14:38 GMT)

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