The Fed is weighing data for signs the U.S. economy can weather higher borrowing costs as global growth stalls. American companies added 126,000 jobs in March, almost half the 245,000 median estimate of 98 analysts surveyed by Bloomberg News. The increase was lower than the most pessimistic forecast and followed a 264,000 gain a month earlier that was smaller than initially reported, the Labor Department said. The rate for fed funds futures for December fell four basis points to 0.34 percent, indicating about one-in-three odds of a rate increase by the Fed’s meeting that month. Policy makers will still increase rates in August or September, according to Bill Gross, who runs the $1.5 billion Janus Global Unconstrained Bond Fund. Fed minutes due Wednesday may give more clarity on the central bank’s approach. At their last meeting, policy makers revised down interest-rate projections, even as they removed a commitment to being “patient” on the timing of rate increases. The U.S. currency declined 1.8 percent after that meeting, the biggest move in six years on a closing basis. It pared gains among a basket of 10 developed market peers to 19 percent for the last 12 months, according to Bloomberg Correlation-Weighted Indexes.
