Waller's Comments Shift Focus to Inflation and Jobs Data Ahead of Key Releases
US Fed Governor Waller's recent comments have shifted the focus to upcoming inflation and jobs data. He hinted at keeping interest rates unchanged in September if August inflation data shows progress, but would consider a hike if it comes in hot.
The remarks, made by Waller, have pushed market pricing for a September rate hike closer to 50/50 from around 60/40 in favor of a hike. This has put downward pressure on the US Dollar, which weakened slightly after the comments.
On the data front, the August ISM services index rose to 55.4, beating expectations and indicating solid momentum in the services sector. The upcoming US Jobs Report is also expected to provide key insights into the labor market, with a forecast of nonfarm payrolls at +65k and an unchanged unemployment rate at 4.1%.