Speculation the Fed would hike rates grew after the Labor Department Friday reported the U.S. economy added almost twice as many jobs last month as Wall Street economists had predicted.
Surging job creation fueled speculation the central bank will boost its interest-rate target by a quarter of a percentage point at its meeting on Nov. 10.
That view had been in eclipse after recent months' weak job's data, coupled with comments from some Fed officials the central bank could be contemplating a pause in its tightening campaign.
But the October jobs surprise drove a shift, and now half a large percentage of primary dealers see the fed funds rate being pushed to 2.25 percent by year's end.
The Fed raised its target for overnight loans between banks, the federal funds rate, by a quarter percentage point at each of its past three meetings, to 1.75 percent from 1 percent.
The Fed's decision on rates is expected at approximately 2:15 p.m. EST on Wednesday.
Copyright 2004 by United Press International
