Bank of America: Fed now more concerned about jobs data, next week PCE may not be as important as before
Next week inflation data could take a back seat after the Federal Reserve signaled it is more concerned about weakness in the U.S. job market, Bank of America analysts said in a report. Personal consumption expenditure inflation for August will be released next Friday, following modest CPI and PPI data earlier this month. Bank of America expects a monthly growth rate of 0.1%, down from 0.2% in July. Weekly jobless claims will be released on Thursday. We continue to believe that the combination of a dovish Fed and a resilient economy will lead to a steeper yield curve, including a steeper breakeven curve,” said Bank of America economists.
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