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FOMC Rate Hike Shock & Jobs Surprise Simulator

Ground truth: @WatcherGuru August jobs report nearly triples expectations (+312k vs +105k cons.)
Macro Presets 3x Jobs Shockwave
Labor Market Counterfactuals
+312k
50k (Recessionary) 105k (Consensus) 450k (Blowout)
3.8%
+0.4%
5.25%
Mechanics & Grounding

When August employment surprised at +312k against a +105k Wall Street consensus, the Federal Reserve’s dual-mandate shifted abruptly toward price stability.

Short-duration yields (2-Year Treasury) rapidly recalibrate to reflect policy inertia or further rate hikes, driving down mortgage affordability, rallying the DXY currency index, and compressing equity valuation multiples.

Sep Implied Action
+25 bps Hike
74% Implied Probability
2-Year Treasury Yield
4.89%
+21 bps Shock
2Y / 10Y Curve Spread
-14 bps
Inverted (-11 bps shift)
DXY Dollar Index
104.35
+0.72% Rally
FOMC September Meeting Implied Distribution Expected Target: 5.43%
Rate Cut (0%)
Hold/Pause (26%)
+25 bps Hike (74%)
+50 bps Hike (0%)
US Treasury Yield Curve (1M to 30Y Tenors) Blue = Post-Jobs Shock | Dashed = Baseline Consensus
Yield curve flattens aggressively in the front-end (bear-flattening) as traders price out 2026 easing cycles.
Downstream Macro Transmission Matrix Asset sensitivity calibrated to basis-point adjustment
Financial Benchmark Baseline Post-Shock Estimated Delta Channel Transmission Note
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