Inflation and Rate Hikes Take Center Stage in Busy Economic Week

Last week's jobs report was weaker than expected, missing consensus estimates of 85,000 new hires. The unemployment rate edged down to 4.1%, while Fed funds futures imply a roughly 43% chance of a 25 basis point interest rate hike at the September 16 FOMC meeting.

This week, inflation data will take center stage as July's Consumer Price Index (CPI) and Producer Price Index (PPI) are released on Wednesday and Thursday. The Cleveland Fed Inflation Nowcasting model projects a benign reading for headline CPI, rising 0.1% month-over-month and 3.4% year-over-year.

Cleveland Fed President Beth Hammack and Richmond Fed President Tom Barkin will speak at 'FedSpeak' events on Thursday, providing insights into the Fed's thinking ahead of the September meeting. In other economic releases, Japan's PPI is due out on Wednesday night EST, while the Reserve Bank of Australia meets on Tuesday to set interest rates.