Rosenberg: Inflation Data Key After Strong Jobs Report
BlackRock's Jeff Rosenberg expects inflation data to be crucial after the strong August jobs report. He believes that this confirms the strength of the labor market and puts focus on next week's consumer price index (CPI) data, which will determine whether or not the Federal Reserve hikes interest rates in September.
The August nonfarm payrolls rose 162,000, surpassing all estimates, according to Bureau of Labor Statistics data released Friday. Yields jumped following the data, and traders increased their bets on a rate hike at the Federal Open Market Committee's September meeting.
Rosenberg said that wage inflation is no longer the primary threat it was during Covid-era disruptions. He described the current job market as 'low-hire, low-fire.'
He noted that the real inflation risk now comes from energy price increases moving from headline inflation into core inflation, citing a record average diesel price of $5.85 per gallon at US pumps.