US hiring smashed forecasts in August, with 162,000 jobs added versus roughly 56,000 expected, while unemployment held at 4.1%. Previous figures were also revised higher, with July now showing 21,000 jobs created rather than a 23,000 decline. The surprise suggests the US labour market remains far stronger than feared and should support consumer spending. However, with inflation still above the Federal Reserve’s 2% target and higher energy prices adding pressure, the report strengthens the case for another interest-rate rise this month. Markets quickly raised expectations for a September hike. The two-year US Treasury yield rose around four basis points to 4.38%, while the S&P 500 fell as investors priced in tighter monetary policy.