U.S. labor data pushes September 2026 Fed hike pricing to 46.5%

  • Labor data showed weaker hiring in July and August.
  • 58% to 46.5%: September 2026 Federal Reserve hike pricing declined.
  • Markets will monitor employment data, inflation figures and Federal Reserve communications.

U.S. labor-market data is showing signs of weakening, with July nonfarm payrolls declining by 23,000 and August private payrolls increasing by only 38,000, the smallest gain since the beginning of the year. The softer hiring picture has reduced market expectations for aggressive Federal Reserve tightening and increased expectations for rate cuts in 2026. Prediction-market pricing for a Federal Reserve rate hike by September 2026 fell from 58% to 46.5%, while YES pricing for cuts by year-end rose. Investors will focus on upcoming employment reports, inflation data and Federal Reserve communications, including statements from Chair Jerome Powell, as they reassess the path of monetary policy. Vera is offering live prediction-market analysis and invites users to sign up.

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