Traders stick to rate-cut bets after mixed jobs report

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Traders stick to rate-cut bets after mixed jobs report
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U.S. short-term interest rate futures dipped on Friday as a government report sh...

- U.S. short-term interest rate futures dipped on Friday as a government report showed U.S. employers slowed hiring in August, leaving intact bets that the Federal Reserve will follow July’s interest-rate reduction with two more rate cuts this year.

The U.S. Labor Department said nonfarm payrolls expanded by 130,000 jobs last month, fewer than the 158,000 increase forecast by analysts polled by Reuters.“Signs of maturing labor market growth were certainly evident in today’s employment report as monthly payroll additions slowed below forecasted levels,” said Charlie Ripley, senior investment strategist at Allianz Investment Management.

The U.S. central bank lowered borrowing costs by a quarter point to 2.00-2.25%, marking its first rate decrease since 2008.

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