Weak U.S. labour market data for July prompted financial markets to scale back expectations of a Federal Reserve interest-rate hike next month, reversing a trend of rising bets for tighter policy after several Fed officials had argued that stubborn inflation warranted higher rates, Reuters reported.
U.S. interest-rate futures moved to price the odds of a rate increase at the Federal Open Market Committee's September 15-16 meeting at below 50%, compared with expectations earlier in the week that a hike was more likely than not. Markets were also divided over where interest rates would stand by the end of the year, Reuters reported.
