Strong Jobs Data Fuels Concerns of Upcoming Fed Rate Hike

The US economy added 162K jobs in August, exceeding Wall Street expectations of 53K. This has sparked concerns that the Federal Reserve may move to a hawkish monetary policy stance, which could negatively impact riskier assets like crypto.

Morgan Stanley expects the US CPI to come in at 0.23% on a monthly basis, with core PCE inflation at 0.2%. The bank also predicts the annual core inflation will be revised down to 3.1% from 3.3%.

Despite this, Morgan Stanley says it expects the Fed to keep rates unchanged at its September gathering, providing temporary relief to market participants.