The US economy added 162,000 jobs in August, nearly tripling the consensus forecast of 56,000 to 65,000. Despite this beat, the probability of a September rate hike only rose from 49-55% to approximately 58-60%, analysts say. The unemployment rate held steady at 4.1%, showing a resilient labor market without overheating. The Fed, whose current target range sits at 3.50%-3.75%, will wait for the Consumer Price Index (CPI) report on September 11 before making its decision, with Chair Kevin Warsh clearly indicating that inflation, not employment, will drive policy.
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