Markets Wait with Bated Breath as Payrolls and CPI Data Set to Impact Fed Decisions
Financial markets are abuzz ahead of key economic indicators, with investors watching closely for signs of inflation and interest rate decisions by the Federal Reserve. U.S. Federal Reserve Governor Christopher Waller has weighed in, urging markets to 'give disinflation a chance' as global bond yields soar.
The August nonfarm payrolls report is due out later in the day, but according to Waller, it's not the data investors should be looking for. Instead, he suggests that the upcoming August CPI report next week will hold the secrets to the Fed's path forward.
Market participants are predicting a modest increase of 56,000 jobs and a steady unemployment rate of 4.1%, with some economists modeling PCE inflation down to three decimal points due to the high stakes.