Further 75 basis points hike 'almost a done deal' as US labour figures beat expectations

More than double predictions

James Baxter-Derrington
clock • 2 min read

Investors should be prepared to see further tightening from the Federal Reserve as the strength of US employment data takes economists by surprise.

The US jobs market added 528,000 jobs in July, pushing the unemployment rate down slightly to 3.5%, but economists had predicted jobs growth would slow to 250,000. As such, investors should be prepared for a 75 basis points hike from the Fed come September, according to chief strategist at Principal Global Investors Seema Shah, who said such a rise was "almost a done deal". US economy enters technical recession "Not only is the labour market undoubtedly still tight, but wage growth is uncomfortably strong," she explained. "The Fed has its work cut out for it to create sufficient s...

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