Fed seen skipping October rate hike as job market cools

Business Recorder reported that US employers added only 29,000 jobs last month, according to the Labor Department, well below the 90,000 economists had forecast. Payroll gains for August were revised downward, and the unemployment rate rose to 4.2% from 4.1%.

The Federal Reserve lifted its benchmark borrowing rate by a quarter point last month as it works to bring inflation back toward its 2% target. Officials signaled that another increase is likely by year end if inflation pressures linked to the Iran war and other shocks persist, provided hiring holds up.

Rate futures now put the chance of a hike at the Fed's October meeting below one-in-five, down from above one-in-four before the figures came out. Traders also pared their bets on a December increase, though markets still assign that outcome a probability of nearly 90%.