Traders of Fed funds futures priced in nearly 70% chance of a 25 basis point rate hike by the Federal Reserve when the central bank meets in May. The probability of a hike rose to 67.4% after the data, up from 49.2% a day earlier, according to data from the CME’s FedWatch tool. Analysts said the March jobs report would likely embolden the Fed to hike in May, as the labor market continued to see signs of strength last month. The U.S. economy created 236,000 jobs, just shy of the 238,000 median estimate from economists polled by the Wall Street Journal. Average hourly earnings for private-sector employees also slowed to 4.2% over the prior 12 months. Wage growth is seen by the Fed as an important inflation driver.
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