Fed-funds futures traders priced in a 32% probability the Federal Reserve will lift its key rate by 25 basis points at its June 13-14 policy meeting, according to the CME FedWatch tool. That’s up from 20.4% on Thursday, but down from 64.2% a week ago. The move comes after data showed the U.S. economy added 339,000 jobs in May, blowing past expectations for an increase of 190,000, while the unemployment rate rose 3.7% from 3.4%. Bets on a June hike were scaled back this week after remarks by Federal Reserve officials indicated they would consider leaving rates on hold while reserving the ability to lift them at subsequent meetings if warranted. Treasury yields rose and the stock-index futures built on an earlier gain.
