US rate hike expectations ease
Softer-than-expected US inflation weakened the dollar and pulled Treasury yields lower, prompting traders to reduce expectations for Fed rate hikes. Goldman Sachs shifted its forecast for the next hike from October to December; subsequent reports cited cooling jobs data as further reducing October hike odds.
Timeline
Friday, 2 October
- Bets on an October Fed rate hike fall as US job market cools
The US added 29,000 jobs last month, below economists’ forecast of 90,000
Thursday, 1 October
- Goldman Sachs shifts next Fed rate hike forecast from October to December
Goldman Sachs moved its forecast for the next US rate hike to December from October
Wednesday, 30 September
- US dollar retreats after softer-than-expected inflation data
The dollar weakened against key currencies after US inflation came in softer than expected
- US yields pull back as rate hike bets ease after inflation data
Treasury yields pulled back as traders moderated expectations for Federal Reserve rate hikes after inflation data
